PREDICTIVE DISCOVERY LIMITED
CORPORATE DIRECTORY
DIRECTORS
Mr Phillip Jackson BJuris LLB, MBA, FAICD (Appointed 4 December 2014)
Mr Paul Roberts BSc, MSc, FAIG, MGSA
Mr Philip Henty BA Acc, Dip SIA, F Fin
Mr Timothy Markwell BSc (Hons), GradDipAppFin, MAusIMM
SECRETARY
Mr Eric Moore
REGISTERED OFFICE
Suite 2, Level 2
20 Kings Park Road
WEST PERTH WA 6005
Postal Address:
PO Box 1710
WEST PERTH WA 6872
T: +61 8 6143 1840
E: info@predictivediscovery.com
W: www.predictivediscovery.com
AUDITORS
Nexia ASR
Level 18, 530 Collins Street
MELBOURNE VIC 3000
SHARE REGISTER
Link Market Services Limited
Level 4, 152 St Georges Terrace
PERTH WA 6000
T: +61 8 9211 6670
E: info@linkmarketservices.com.au
SOLICITORS
Corrs Chambers Westgarth
240 St George’s Terrace
PERTH WA 6000
BANKERS
Australian and New Zealand Banking Group Limited
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HOME EXCHANGE
Australian Securities Exchange, Perth
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PERTH WA 6000
ASX Code: PDI
PREDICTIVE DISCOVERY LIMITED
TABLE OF CONTENTS
CHAIRMAN’S LETTER
REVIEW OF OPERATIONS
DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDITOR’S REPORT
ADDITIONAL SHAREHOLDER INFORMATION
INTERESTS IN MINING TENEMENTS
1
2
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24
25
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27
28
29
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57
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PREDICTIVE DISCOVERY LIMITED
30 JUNE 2015
CHAIRMAN’S LETTER
Dear Fellow Shareholder,
Predictive Discovery Limited (‘PDI’) has made substantial progress in the past year despite the very
difficult market conditions for junior gold explorers.
Following the excellent drill results from Bongou reported in 2013-14, we calculated and announced a
maiden gold resource for that deposit in September 2014. Bongou is thick and high grade with
preliminary metallurgical testwork indicating excellent gold recoveries. The resource was calculated
within the confines of a conceptual open pit and the deposit is open at depth. There is good potential to
discover more resources at depth which may be mineable using a bulk underground extraction method.
Our Burkina Faso strategy is now focused on defining new resources at and near Bongou that can
support a substantial gold mining operation. Consequently, following estimation of the Bongou resource
we designed and implemented a careful and cost effective exploration program using a new approach
based on lessons learned from the Bongou discovery history. This culminated in a 3,854m drilling
program in May 2015 which identified new gold mineralisation at a number of locations within 10km of
Bongou. This work has increased our confidence in the area’s potential and provided us with a clear
priority list for resource definition drilling.
Predictive’s joint venture partner in Cote D’Ivoire has made significant progress since starting work in
March this year. We are beginning to see the fruits of that work now and we are confident that there will
be a lot more good news coming out of the Toro Gold joint venture in the coming year.
We thank our largest shareholder, Aurora Minerals Limited for its support and especially for underwriting
our rights issue in November 2014. With this support, we have been able to continue advancing our
Burkina Faso project.
Thank you to our Managing Director, Paul Roberts, my fellow Directors and our staff in Australia and
Burkina Faso. This has been another very difficult year and the Company has been obliged to cut costs
wherever possible. Despite this, we have managed to continue to advance our projects with the
assistance of our shareholders and joint venture partners. I thank everyone for their dedication to
Predictive.
Finally, I thank all of our shareholders for your support during a difficult time. I look forward to seeing
your patience rewarded in the years to come.
Phillip Jackson
CHAIRMAN
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PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS
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Review of Operations
HIGHLIGHTS
Predictive Discovery Limited (PDI) carried out a successful exploration program in 2014-15. Important
achievements included:
Resource estimate for the high grade Bongou Gold Deposit in Burkina Faso, as follows:
Indicated Resources
Inferred Resources
Total Resources
Cut-off
grade (g/t
Au)
0.4
0.8
2.0
3.0
Million
tonnes
1.21
1.14
0.64
0.34
Au
(g/t) Ounces
99,000
2.54
98,000
2.67
75,000
3.64
52,000
4.68
Million
tonnes
1.33
1.09
0.49
0.28
Au
(g/t) Ounces
2.13 91,000
2.48 86,000
3.90 61,000
4.95 45,000
Million
tonnes
2.55
2.22
1.13
0.62
Au
(g/t) Ounces
2.32 190,000
2.58 184,000
3.75 136,000
96,000
4.80
Discovery of additional gold mineralisation within 10km of Bongou, particularly at the Prospect 71
and Target 92 prospects.
Completion of a large exploration program in Burkina Faso, focused on Bongou and the
surrounding area, including 3,854m of RC and air core drilling, 5,390m of power auger drilling and
completion of six ground magnetics surveys.
Signature of a joint venture agreement with Toro Gold Limited of the UK resulting in
commencement of a substantial exploration program by Toro on Predictive’s ground and receipt of
$US200,000 in a signature payment.
INTRODUCTION
PDI is exploring for large, high value gold deposits in West Africa. The Company’s project focus is on 13
gold exploration permits in Burkina Faso, West Africa, covering a total area of 1,605km 2, especially the
Bonsiega Project in the well mineralised Samira Hill greenstone belt (Figure 2). The Company also has
a large ground position in Cote D’Ivoire, covering 1,533km2.
BURKINA FASO GOLD PROJECTS
Background
PDI’s Burkina Faso projects are all located within the Birimian gold belts in West Africa. These belts
contain numerous gold ore deposits (Figure 1), many of which are in production.
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REVIEW OF OPERATIONS
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Figure 1: Map of the Birimian Gold Belt showing major mines and PDI project location areas.
Burkina Faso is a landlocked country, bounded to the south by Ghana, Cote D’Ivoire, Togo and Benin, to
the west by Mali and to the east by Niger (Figure 1). Gold mining in the past was confined to artisanal
mining and one substantial mining operation at Poura in the west of the country which closed in 1999. In
the past nine years, however, there has been a strong resurgence in exploration and mine development,
stimulated especially by the release of new mining regulations in 2003.
Seven gold mines are now in production. New mine developments are underway on the Yaramoko
(Roxgold Resources) and Karma (True Gold Mining) gold deposits. Positive feasibility study results have
also been announced on the Natougou (Semafo), Banfora (Gryphon Minerals) and Mankarga (West
African Resources) deposits indicating that more mines will be developed in the coming years.
Some Burkina Faso prospects have gold grades well above the West African average, notably
Yaramoko, Natougou and PDI’s own Bongou deposit, indicating that Burkina Faso has significant
potential for high-grade, low cost ounces.
In common with other West African countries, the Government has the right to take a free carried interest
of 10% in any ore deposit that is brought into production. Gold mining royalties range from 3% to 5%
depending on the gold price. The rate of corporate tax for mining companies is 27.5%.
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PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS
30 JUNE 2015
Figure 2: Location of PDI’s Burkina Faso permits, highlighting the Bongou Prospect. Note that the nearby operating
Samira Hill gold mine in Niger contains resources, reserves and past production of 2.5 million ounces (source:
www.semafo.com).
In Burkina Faso, PDI holds rights to explore 13 granted exploration permits covering a total area of
1,605km2. The bulk of the tenement area is contained in 10 permits known as the Bonsiega permit
group in the Samira Hill greenstone belt (Figure 2).
The Company’s objective in Burkina Faso is to discover a large resource/reserve inventory with an
average grade of 2 to 3g/t Au capable of supporting a major gold mining operation.
High-grade gold results have been obtained from drilling on a number of prospects throughout PDI’s
large Burkina Faso ground holdings, including Bongou (Figure 2). The Company’s immediate focus is on
Bongou and the surrounding area.
Bonsiega Permit Group
Background
The Bonsiega Permit Group consists of 10 exploration permits totalling 1,119 km2 covering
approximately 100km of strike length in the same greenstone belt which hosts the Samira Hill Mine in
Niger (Figure 2).
Most of the permits contain artisanal workings and/or significant gold geochemical anomalies.
The Bonsiega permits were acquired either by direct application in PDI’s name or through agreements
with third parties. PDI owns 100% of seven of the permits. The other three agreements are option
deals with local businessmen in which PDI is earning either a 95% or 100% equity through a series of
option payments. Option payments were deferred or reduced in 2014-15 on these permits in order to
conserve cash.
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Figure 3: Geology of the SE Bonsiega Permit, including the Bongou Prospect and nearby exploration targets
In earlier exploration, PDI has discovered gold mineralisation on many prospects in Eastern Burkina
Faso. Following the intersection of broad, high-grade gold mineralisation in multiple holes at Bongou in
late 2013, PDI has focused most of its attention on Bongou and the surrounding area.
Bongou Prospect (PDI 100%)
The Bongou gold prospect is located in Eastern Burkina Faso (Figures 2-3). Gold mineralisation there
is contained within an intensely altered pyrite-bearing granite intrusion. PDI has completed four RC and
diamond drilling programs at Bongou since the discovery was made in mid-2012, resulting in a series of
high grade and width drill intercepts (e.g. Figure 1).
Bongou Maiden Resource Estimate
The Company completed a formal Mineral Resource Estimate in August-September 2014 on the drilled
out portion of the deposit with the assistance of Golder Associates (reported to the ASX on 4th
September 2014).
Results of the Bongou Mineral Resource estimate are tabulated as follows:
Indicated Resources
Inferred Resources
Total Resources
Cut-
off
grade
Million
tonnes
Au
(g/t) Ounces
Million
tonnes
Au
(g/t) Ounces
Million
tonnes Au (g/t) Ounces
0.4
0.8
2.0
3.0
1.21
2.54
99,000
1.33
2.13
91,000
2.55
2.32
190,000
1.14
2.67
98,000
1.09
2.48
86,000
2.22
2.58
184,000
0.64
3.64
75,000
0.49
3.90
61,000
1.13
3.75
136,000
0.34
4.68
52,000
0.28
4.95
45,000
0.62
4.80
96,000
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REVIEW OF OPERATIONS
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Mineral Resource Governance and Internal Controls
Predictive Discovery Limited ensures that the Bongou Mineral Resource estimate quoted here is
subject to governance arrangements and internal controls. The Bongou Mineral Resource was
estimated under the supervision of by Mr Richard Gaze of Golder Associates, an independent third
party competent person. The Bongou resource statement was subject to review by Predictive
Discovery Limited’s technical staff and suitably qualified members of the Board of Directors.
The Company confirms that its Mineral Resources are reported in accordance with the ‘Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code)
2012 Edition.
Notes on the Bongou Deposit
The Company notes that:
The Bongou deposit is intrinsically high grade, because:
o There is very little difference in contained ounces between the 0.4g/t Au cut-off and the
0.8g/t Au cut-off grades, and
o Over 70% of the resource ounces are retained when the cut-off grade is raised from
0.8g/t Au to 2.0g/t Au, with a high average grade of 3.75g/t Au.
The bulk of the estimated resources are contained in one mineralised granite body, which is thick
in the near surface and appears to taper to the east.
The shape of the mineralisation lends itself to a simple open pit mining operation, with high-
grade mineralisation in the near surface position, which would suggest the possibility of early
strong cash flow in a future mining operation.
Gold grades are associated with pyrite-bearing altered granite, which is very visibly distinct from
the adjacent low grade gabbro, suggesting that dilution can be minimised quite easily by
standard grade control practice.
Previously reported metallurgical work on a composite sample of primary gold mineralisation
from Bongou gave a 94% gold recovery from a standard 75 micron grind, 72 hour cyanidation
test (ASX release dated 14th May 20131) suggesting that gold recoveries from mining this deposit
would be high.
1 This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the
JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
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Figure 4: Cross Section through drill holes BNGRC010, BNGRD001, BNGRD003 and BNGRD005. Results
reported to the ASX on 2/12/13, 16/12/13, 20/03/14 and 1/05/14.
Exploration Programs near Bongou (PDI 100%)
Strategic Review
PDI reviewed its exploration strategy in Burkina Faso during September and October, 2014 and decided
to focus all its efforts on finding sufficient high grade gold resources near Bongou to support a profitable
gold mine development.
92 exploration targets near Bongou (Figure 3) were identified through a rigorous ranking process focused
on prospects with Bongou-like geological and geophysical characteristics.
Of these, 12 were prioritised for follow-up activities. Most of the prioritised targets were prospects
traversed by strong east-west magnetic linear features, which also characterise both Bongou and known
Bongou-style mineralisation within several kilometres of Bongou. Some targets had pre-existing drill
intercepts (e.g. 24m at 2.1 g/t Au2 at Prospect 71) but most were untested by previous drilling of any
kind.
2 This drill result was reported to the ASX in the March 2012 Quarterly Report. This information was prepared and first disclosed
under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information
has not materially changed since it was last reported.
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REVIEW OF OPERATIONS
Work Programs
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2015
Following the strategic review, the Company completed a large exploration program including:
ground magnetic surveys on six priority targets,
power auger drilling programs, totalling 5,390m, testing ten priority targets,
one soil sampling survey,
XRF measurements on power auger samples from all of the 2014-15 drilling plus all the past
power auger drilling within 3km of Bongou, in order to identify weathered Bongou-like granites in
the subsurface, and
A combined RC and air core drilling program, totalling 3,854m, which tested the highest priority
drill targets determined by the above work, including: three Bongou-like targets within 2km of
Bongou, Targets 4, 11, 75, 92 and Prospect 71 (Figure 3).
Drill Program Results
The following drill results were all reported to the ASX in the June 2015 Quarterly Report.
Target 92 (see Figure 3 for location)
The target area overlaps a large area of surficial artisanal gold workings and coincides with a large east-
west structure interpreted from magnetic data. PDI’s exploration around Bongou in 2014 showed that
such east-west features may have controlled the location of gold mineralisation in this area.
Power auger drilling in March and April 2015 revealed a 3km long gold anomalous area at a 25ppb Au
cut-off. Shallow RC drilling was carried out on widely spaced cross sections, testing areas with better
values in power auger drilling. Better intercepts included:
TBFRC004: 2m at 3.27g/t Au from 0m and 2m at 2.03g/t Au from 10m.
TBFRC010: 3m at 3.91g/t Au from 17m, including 1m at 10.75g/t Au (last metre drilled).
TBFRC011: 9m at 2.83g/t Au from 4m, including 1m at 11.80g/t Au.
The better mineralisation intersected in holes TBRC010 and TBRC011 is hosted by gabbro on the
margins of steeply dipping diorite bodies (Figure 4). This is an interesting new style of mineralisation
with some geological similarities to Bongou. The zone is open in all directions, including for at least
600m along strike to the east and west. The presence of higher grades in both holes is also
encouraging.
Figure 5: Target 92 – cross section through the encouraging TBFRC010 and TBFRC011 drill intercepts.
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PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS
Prospect 71 (see Figure 3 for location)
30 JUNE 2015
This prospect lies near the northern edge of a large gold geochemical anomaly covering 2.4km 2. Close
spaced power auger drilling and ground magnetic surveys in early 2015 revealed two sub-parallel NW
striking structures within the broader anomaly. Of these, the southern zone contains a series of strongly
anomalous power auger values including 4.7g/t Au and 1.8g/t Au (ASX releases dated 20 February
2015 and 24 April 2015).
The 2015 drilling program, totalling 911m, was designed to test both of the targeted structures. The best
results were obtained in a cross section through the southern zone (Figure 6), and included:
PSORC056: 6m at 2.25g/t Au from 19m, including 1m at 6.80g/t Au. Stopped in gold
mineralisation
PSORC058: 4m at 3.32g/t Au from 10m, including 1m at 9.22g/t Au.
PSORC060: 14m at 0.84g/t Au from 0m, including 3m at 2.70g/t Au.
This drilling showed a clearly defined shallow dipping gold mineralised zone, which correlates well from
hole to hole (Figure 6). The mineralisation appears to strike NW. Drilling on a parallel section 110m to
the SE revealed several similar, sub-parallel shallowly dipping zones, including 5m at 1.09g/t Au and
24m at 0.47g/t Au in hole PSORC051. This mineralisation appears to correlate with the mineralisation
drilled in PSORC056, indicating that this newly discovered gold zone is open to the south-east.
The dip and strike of the newly discovered mineralisation is entirely new for the area and provides a
possible explanation for the wide area of gold anomalism at Prospect 71. Earlier drilling was designed to
test at right angles to steep dipping, NNE-striking mineralised structures mapped in artisanal mining
workings. It is now clear that the earlier drill lines were not optimally oriented. Despite this, several gold
intercepts were obtained from the earlier drilling, most notably PSORC030 which contained 4m at
7.02g/t Au from 20m3. This suggests that there is ample opportunity to discover more zones of similar,
shallow-dipping gold mineralisation within the Prospect 71 anomaly.
Figure 6: Cross section through the best 2015 drill section in Prospect71, showing shallow dipping zone with good
continuity from hole to hole.
3 These results were first reported to the ASX on 23rd May2012, and were prepared and first disclosed under the JORC Code 2004.
They have not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially
changed since it was last reported.
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Near Bongou (See Figure 7 for prospect locations)
Bongou W2
This target is located 600m from Bongou where PDI has reported a high-grade Indicated and Inferred
Resource of 184,000oz at 2.6g/t Au (reported to the ASX on 4th September 2014). The W2 target was
initially identified by power auger drilling in 2013 and followed up with trenching. In 2014, a single RC
hole intersected 12m at 1.4 g/t Au (reported to the ASX on 1st April 2014).
Three additional RC holes, totalling 241m, were drilled on section lines approximately 50m apart, with the
following results:
BNGRC025: 2m at 3.40g/t Au from 10m, including 1m at 6.17g/t Au.
BNGRC026: 9m at 1.27g/t Au, including 1m at 5.22g/t Au.
BNGRC027: 21m at 0.98g/t Au, including 8m at 1.57g/t Au.
This drilling showed that the mineralisation is open to the west in what appears to be an ENE trending
shear zone cutting through the granite. Geological interpretation based on power auger drilling through
thin cover indicates that the inferred shear zone is likely to persist to the WSW within granite for at least
150m (Figure 8).
The mineralisation dips almost vertically indicating good down-dip continuity (Figure 9).
Figure 7: Near-Bongou exploration targets on interpretative geological map. Targets W2, W7 and W8 were tested
in the 2015 RC drill program.
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REVIEW OF OPERATIONS
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Figure 8: Interpretative geological map of target W2 showing locations of RC drill holes. Results of drill hole
BNGRC018 were reported to the ASX on 1 April, 2014.
Figure 9: Cross section through the central drill section through target W2. Results of drill hole BNGRC018 were
reported to the ASX on 1st April, 2014.
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REVIEW OF OPERATIONS
Bongou W8
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2015
This target is located 2km WNW of Bongou (Figure 7). It coincides with a 60m long artisanal open pit
working and gold anomalous values in power auger drilling and trenches. Four RC holes, totalling 341m,
were drilled on section lines approximately 50m apart, with the following best results:
BNGRC023: 8m at 1.65g/t Au from 18m, including 1m at 5.26g/t Au.
BNGRC024: 8m at 0.72g/t Au from 40m, including 3m at 1.51g/t Au.
The BNGRC023 is located on the westernmost drill line and the mineralised zone is therefore open to the
west and at depth.
Bongou Other
Two holes approximately 50m apart were drilled at Bongou W7 and one hole was drilled south-west of
the Bongou open pit. None of these holes contained a reportable gold intersection.
Targets 4, 11 and 75 (see Figure 3 for locations)
RC drilling, totalling 1,320m, at these three locations identified:
Target 11: anomalous gold in 8 out of 12 holes, including:
o LATRC057: 7m at 1.34g/t Au from 8m, including 4m at 2.05g/t Au, and
o LATRC059: 2m at 2.10g/t Au from 7m.
Target 75: anomalous gold in 4 out of 11 holes but with no results exceeding 1g/t Au.
Target 4: a large, Bongou-like altered granite zone with disseminated sulphides and probably
extending over more than 500m of strike length but with no anomalous gold values.
Exploration Target near Bongou
In August 2015, the Company calculated an Exploration Target on drilled prospects within 10km of the
Bongou gold deposit (ASX release dated 3rd September 2015).
The Exploration Target detailed in the following table is estimated to be in a range of 9.4 to 10.4 million
tonnes averaging between approximately 1.5 to 1.7g/t Au and containing approximately 460,000 to
563,000 ounces of gold, as follows:
Prospect
Names
(see Figure 3
for locations)
Dave
Laterite Hill
Near Bongou
(W2/W8)
Prospect 71
Target 92
Totals
Million Tonnes
Grade
Ounces Gold
Lower
estimate
6.71
1.48
Higher
estimate
7.41
1.63
Lower
estimate
1.49
1.62
Higher
estimate
1.65
1.79
Lower
estimate
322,000
77,000
Higher
estimate
394,000
94,000
0.27
0.68
0.23
9.37
0.30
0.75
0.26
10.35
1.57
1.21
2.88
1.53
1.74
1.33
3.18
1.69
14,000
17,000
26,000
21,000
460,000
32,000
26,000
563,000
Cautionary Statement: The potential quantity (tonnage) and grade of the Exploration Target is conceptual in nature. There has
been insufficient exploration to estimate Mineral Resources and it is uncertain if further exploration will result in the estimation of
Mineral Resources.
The calculation was restricted to prospects for which there is good evidence of mineralisation orientation
and continuity. Most of these prospects are open along strike and at depth. A number of other isolated
gold intercepts within 10km of Bongou were excluded, so there is significant potential to expand the
Exploration Target further within range of PDI’s own drilling.
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Additionally, PDI’s extensive ground holdings in Eastern Burkina Faso hold other significant prospects for
which Exploration Targets could be calculated (e.g. Tambiri, Solna, Bira and Fouli)
Data and parameters used in calculating this Exploration Target were as follows:
Data:
o Gold intercepts from 291 reverse circulation holes, 4 air core holes and 5 diamond drill holes4
were used in the calculation.
o The holes were mostly drilled on lines spaced from 50m to 100m apart, with a spacing along
the lines ranging from 10m to 50m.
Parameters:
o 0.5 g/t gold cut-off grade;
o Minimum downhole intercept width of 2m and a minimum grade times width intercept of 2g*m;
o Minimum internal waste of 3m except for a few holes where it was clear that the holes had
drilled almost down-dip and where the inclusion of larger down-hole intervals of internal waste
made geological sense;
o Maximum of 100m strike extent from drill holes (where the continuity of the mineralisation is
supported by mapping and/or the location of artisanal workings and/or anomalous auger
results);
o Maximum of 70m vertical extent below surface;
o Dry bulk density estimates as follows:
Laterite: 2.2
Saprolite: 1.8
Weathered rock between base of saprock and base of complete oxidation (BOCO): 2.3
Fresh mafic volcanics: 2.8
Fresh felsic to intermediate rocks including granite and granodiorite: 2.7
o The calculation was carried out using a cross sectional method with volumes projected half
way to the next hole (on the section) or half way to the next section to a maximum distance of
100m (along strike).
Additional Potential
Most of the zones of gold mineralisation included in the Exploration Target are open at depth and along-
strike. In addition, there are a series of other mineralised intercepts which have potential for resource
discovery either along strike or at depth.
Follow-up Drilling
Subject to funding availability, Predictive plans to follow up the Exploration Target calculation with drilling
programs on all the listed prospects in order to make Mineral Resource Estimates. A total drilling budget
of 20,000m, consisting of both RC and diamond drilling, has been calculated to complete this task, and is
planned for completion over the next two years.
COTE D’IVOIRE (PDI Diluting to 49%)
Background
Systematic work on Côte D’Ivoire data sets since 2010 led PDI to identify a series of high priority prospects and
targets. As a result, the Company has holds four granted exploration permits in the country, covering a total area of
1,533 km2 (Figure 10).
4 These drilling results were reported to the ASX in the following Quarterly Reports: June Quarter 2011, March Quarter 2012, June
Quarter 2012, March Quarter 2014 and June Quarter 2015. The drill results reported in these Quarterly Reports up to the June
Quarterly of 2012 were prepared and first disclosed under the JORC Code 2004; they have not been updated since to comply with
the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.
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Figure 10: Geological Map of Cote D’Ivoire showing location of PDI permits and major gold deposits
Toro Gold Joint Venture
PDI announced to the ASX that it had signed a Heads of Agreement (HOA) with Toro Gold Limited
(Toro) on the Company’s entire Cote D’Ivoire ground holding on 22nd September 2014. The terms of that
agreement included:
Toro to spend US$1 million in exploration of PDI’s Cote D’Ivoire ground to earn 51% in PDI’s
Cote D’Ivoire subsidiary, Predictive Discovery Cote D’Ivoire SARL (Predictive CI), which holds
PDI’s four Cote D’Ivoire permits (Figure 10);
Toro to pay US$200,000 in cash to PDI on completion of legal due diligence and execution of a
full Joint Venture document. This was subsequently paid in June 2015;
Assuming that Toro earns the initial 51%, Toro will make further cash payments of up to
US$100,000 in the next 2 years;
After Toro has earned 51%, PDI may choose to contribute or dilute in stages. If PDI chooses to
dilute, Toro can earn 65% by spending US$2.5 million and up to 90% by sole funding through to
a full feasibility study;
Toro’s minimum commitment is US$400,000 expenditure within 12 months. Toro Gold has
advised PDI that this minimum amount has now been spent.
- 14 -
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS
30 JUNE 2015
Toro is a private gold exploration and development company focused in Africa. It is led by a team with a
successful track record of discovery, development, operation and corporate transactions. Toro is well
funded, and has strong institutional shareholder support, including the African Lion 3 Fund, Resource
Capital Funds, Macquarie Bank and Sprott5. Toro’s flagship project is the Mako deposit in Senegal. A
Definitive Feasibility Study has recently been completed. This joint venture is Toro’s first investment into
Cote D’Ivoire.
Work completed by Toro to the end of June 2015 consisted of geological mapping, rock chip and large
soil sampling programs on the Kokoumbo and Boundiali exploration permits (Figure 10). At the end of
June 2015, Toro had collected 4,886 soil and rock samples on the Kokoumbo permit and 1,088 soil
samples on the Boundiali permit. Results of the Kokoumbo soil and rock chip sampling were released to
the ASX on 15th September 2015, and included the following highlights:
Rock chip and selective quartz samples with high values including 98g/t Au, 54g/t Au, 44g/t Au
and 23g/t Au.
Widespread, strong soil gold geochemical anomalies with peak values of 5.6g/t Au, 3.4g/t Au
and 3.3g/t Au:
o A 6km long WNW trending gold in soil anomaly on the contact with an interpreted granite
body and coinciding with PDI’s strongest stream sediment anomaly on the permit.
o A strong gold anomaly covering more than 2 km2 including the historic Kokoumbo Mine
workings
VICTORIAN GOLD PROJECT
Cape Clear EL5434 (PDI diluting to 49%)
PDI has one project remaining in Australia, the Cape Clear Project west of Ballarat in Victoria (Figure
11). The Company’s objective there is to discover a large gold deposit on the margins of one of more
concealed volcanic domes beneath basalt cover, similar to the 5 million ounce Stawell gold deposit in
western Victoria.
Figure 11: Cape Clear Project, Victoria - locality plan
5 Source: http://www.torogold.com/
- 15 -
PREDICTIVE DISCOVERY LIMITED
REVIEW OF OPERATIONS
30 JUNE 2015
PDI announced the signing of a joint venture agreement with Cape Clear Minerals Pty Ltd (CCM) in
regards to the project on 22nd September 2014. Key terms of the agreement were:
CCM may earn 51% equity with $250,000 expenditure (Phase 1)
At least 1,000m of RC or diamond drilling included within $250,000 minimum expenditure in the
first year
At CCM’s election, it may increase equity to 75% with an additional $250,000 in expenditure
(Phase 2)
PDI may contribute to exploration expenditure or dilute after CCM reaches either 51% or 75%,
depending on whether or not CCM chooses to sole fund Phase 2
PDI’s interest converts to a 2% NSR (royalty) if its joint venture interest decreases to below 10%.
CCM’s exploration work during the 2014-15 year consisted of a gravity survey, limited rock chip sampling
and obtaining the necessary permissions for a 1,000m drilling program. That drill program is expected to
be completed in October 2015.
CORPORATE
Capital raisings during the year totalled $1.85 million via a placement and underwritten rights issue in
October-November 2014. The Company’s overhead costs were again reduced in 2014-15, reflecting the
ongoing difficult capital raising environment during the year.
OUTLOOK
In Burkina Faso, Predictive’s priority is to leverage the economic potential of the Bongou gold deposit and
the surrounding prospects in order to develop a profitable gold mining operation with a central mill
situated at or close to Bongou. To this end, the Company’s 2015-16 objective is to advance its Eastern
Burkina project towards that goal with drilling and associated evaluation studies, either using its own
funds or with a support of a suitable joint venture partner.
Elsewhere, in Cote D’Ivoire and Victoria, Predictive’s projects are being explored by highly competent
joint venture partners. The Company retains rights to fund its minority equity in those projects once its
partners have earned majority stakes and if significant exploration success has been achieved.
Competent Person’s Statement
The exploration results and Exploration Target reported herein, insofar as they relate to mineralisation, are based on
information compiled by Mr Paul Roberts (Fellow of the Australian Institute of Geoscientists). Mr Roberts is a full-time
employee of the company and has sufficient experience relevant to the style of mineralisation and type of deposits being
considered to qualify as a Competent Person as defined by the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves. Mr Roberts consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
The input data, including the drill hole dataset, topography and geology interpretation used in the Mineral Resource
estimate for the Bongou deposit is based on information and supporting documentation compiled by Mr Paul Roberts. Mr
Roberts is a full-time employee of Predictive Discovery Ltd and a Fellow of the Australasian Institute of Geoscientists. Mr
Roberts has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person as defined in the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (2012 Edition). Mr Roberts consents to the inclusion of the drill
hole data, topography and geological interpretation and the supporting information in the form and context in which it
appears in this report.
The Mineral Resource estimation and classification of Mineral Resources and Exploration Targets for the Bongou deposit is
based on, and fairly represents, information and supporting documentation compiled by Mr Richard Gaze. Mr Gaze is a full-
time employee of Golder Associates Pty Ltd and a Member and Chartered Professional of the Australasian Institute of
Mining and Metallurgy. Mr Gaze has sufficient experience that is relevant to the style of mineralisation and type of deposit
under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 Edition). Mr Gaze consents to the
inclusion of the estimates, classification and the supporting information in the form and context in which it appears in this
report.
- 16 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2015
Your directors present their report for the financial year ended 30 June 2015.
The names of the directors in office at any during, or since the end of the year are:
NAMES
Mr Phillip Harman
Mr Phillip Jackson
Mr Paul Roberts
Mr Philip Henty
Mr Timothy Markwell
POSITION
Non-Executive Chairman (resigned 25 November 2014)
Non-Executive Chairman (appointed 4 December 2014)
Managing Director
Non-Executive Director
Non-Executive Director
The Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
COMPANY SECRETARY
Eric Moore (Appointed 7 April 2015)
Eric (Ric) Moore was appointed as Company Secretary on 7 April 2015. He has held senior managerial positions in
a number of resource companies during the past 20 years and was Company Secretary of a public listed company
between 1996 and 2005. Ric is also Company Secretary of Aurora Minerals Limited and Peninsula Mines Limited.
Mr Ian Hobson was Company Secretary from September 2010 until his resignation on 7 April 2015.
PRINCIPAL ACTIVITIES
During the financial year, the principal activity of the group was mineral exploration with the objective of identifying
and developing economic reserves in West Africa and Australia.
OPERATING RESULTS FOR THE PERIOD
The consolidated loss of the group for the financial year after providing for income tax amounted to $7,060,889
(2014: $2,589,882). This was largely from the costs of administering the group to 30 June 2015, impairment of
exploration and exploration costs.
REVIEW OF OPERATIONS
In the year to June 2015, Predictive Discovery Limited (PDI) undertook a substantial exploration program and
announced a maiden resource for the Company’s high grade Bongou gold deposit in Burkina Faso. $1.9 million was
successfully raised via a combined placement and underwritten rights issue in October-November, 2014. As in
previous years, staff numbers were again reduced in Burkina Faso and Australian office costs were lowered further,
reflecting the ongoing difficult capital raising environment. Special three year renewals were obtained for PDI’s key
permits: Madyabari (which includes the Bongou and Dave prospects), Sirba, Bangaba and Fouli. PDI also
implemented a farm-out strategy to ensure that exploration funds would be focused on the Company’s Burkina Faso
properties. To this end, PDI’s four Cote D’Ivoire exploration permits were farmed out to Toro Gold Limited, a UK
based company, and the Company’s Cape Clear Exploration Licence (EL5434) in Victoria was joint ventured out to
Cape Clear Pty Ltd, a Ballarat-based Company. Toro Gold Ltd is spending US$1 million to earn 51% in PDI’s Cote
D’Ivoire subsidiary, Predictive Discovery Cote D’Ivoire SARL, and paid US$200,000 in cash to PDI on completion of
legal due diligence and execution of joint venture documentation during the past year. Cape Clear will spend
$250,000 to earn 51%, and a further $250,000 to earn 75%, in EL5434.
PDI announced a Mineral Resource Estimate for Bongou of 2.2Mt at 2.6g/t Au containing 184,000oz Au, including
136,000oz Au at an average grade of 3.8g/t Au (ASX release dated 4th September 2014). A review of exploration
potential around Bongou in late 2014 revealed over 90 targets with Bongou-like characteristics within 25km of
Bongou. Exploration programs in Burkina Faso during the year were largely focused on those targets. 9,244m of
drilling was completed, consisting of 3,854m of combined reverse circulation and air core drilling and 5,390m of
power auger drilling. Encouraging RC drill results were obtained from Target 92, Prospect 71, W2 and W8
prospects, all of which are within 10km of Bongou (ASX release dated 20th July 2015). Ground magnetics surveys
and limited soil sampling were also carried out on some targets. XRF measurements on historic power auger
samples and data compilation and interpretation were conducted elsewhere in Burkina Faso.
- 17 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2015
Toro Gold Ltd commenced work on PDI’s Cote D'Ivoire permits in March, and, by the end of June, had carried out
geological mapping and collected over 4,000 soil and rock chip samples on the Kokoumbo permit. Cape Clear Pty
Ltd completed a gravity survey on PDI’s Cape Clear Exploration Licence and planned a 1,000m drilling program,
which is due to commence in September 2015.
DIVIDENDS PAID OR RECOMMENDED
No dividends were paid or declared since the start of the financial year. No recommendation for payment of
dividends has been made.
FINANCIAL POSITION
The net assets of the group have decreased by $5,416,680 from 30 June 2014 to 30 June 2015. This net movement
is largely due to the following factors:
$1.6m net capital raising;
Expenditure on exploring and evaluating the assets in Burkina Faso and Cote d’Ivoire; and
Impairment of exploration costs carried forward.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
During the year Aurora Minerals Limited (ASX: ARM) assumed 44% ownership of Predictive Discovery Limited, and
the balances of the group are consolidated into Aurora, as they have control over the group. This does not have an
impact on the amounts presented in the group’s financial statements.
EVENTS SUBSEQUENT TO BALANCE DATE
There are no matters or circumstances that have arisen since balance date that significantly affect the operations of
the group, the results of those operations, or the state of affairs of the group in future financial years.
FUTURE DEVELOPMENTS
Likely developments in the operations of the group and the expected results of those operations in future financial
years have not been included in this report, as the inclusion of such information is likely to result in unreasonable
prejudice to the group.
ENVIRONMENTAL ISSUES
The group’s operations are subject to significant environmental regulations under both Commonwealth and State
legislation. The Board believes that the group has adequate systems in place for the management of its
environmental regulations and is not aware of a breach of those environmental requirements as they apply to the
group.
INFORMATION ON DIRECTORS
Mr Phillip Jackson
Non-Executive Chairman (Appointed 4 December 2014)
Qualifications
BJuris, LLB, MBA, FAICD
Experience
legal and
Mr Jackson, the Chairman and a Director of the Company, is a barrister
and solicitor with significant
international corporate
experience, especially in the areas of commercial and contract law,
resources law and corporate governance. He was formerly a managing
legal counsel for Western Mining Corporation, and in private practice
specialised in small to medium resource companies. Phillip was for
many years a director and senior executive of the Australian and Asian
subsidiaries of a large multinational oil services company. He is now
the Legal Manager of the regional operations of a large oil and gas
- 18 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2015
company. He has been a director of a number of Australian public
companies and has management experience in administration, finance,
accounting and human resources.
Interest in Shares and Options
Nil
Directorships held in other listed entities
during the three years prior to the current Resources Limited
year
Aurora Minerals Limited, Peninsula Mines Limited and Scotgold
Mr Phillip Harman
Non-Executive Chairman (Resigned 25 November 2014)
Qualifications
Experience
Directorships held in other listed entities
during the three years prior to the current
year
Mr Paul Roberts
Qualifications
Experience
BSc (Hons), MAusIMM, MAICD
Mr Harman is a professional geophysicist who spent more than 30
years working for BHP Billiton in minerals exploration in a broad
number of roles both technical and managerial, both in Australia and
overseas. Mr Harman was material in bringing BHP Billiton’s
proprietary FALCON® airborne gravity gradiometer technology to
Gravity Capital Limited in 2001, which was the precursor to Gravity
Diamonds Limited.
Callabonna Resources Limited and Stellar Resources Limited.
Managing Director
BSc, MSc, FAIG, MGSA
Mr Roberts has a long and successful history in mineral exploration
management and mine geology both in Australia and overseas. He
was responsible for discovery of the Henty gold deposit and major
extensions to the St Dizier tin deposit both in Tasmania, as well as
resource evaluations of the Kuridala copper gold deposit in North
Queensland, the Bongara zinc deposit in Peru and a number of gold
deposits in the Cue and Meekatharra districts in Western Australia.
Interest in Shares and Options
Shareholding: 7,165,895 Optionholding: 3,000,000
Directorships held in other listed entities
during the three years prior to the current
year
None
Mr Philip Henty
Qualifications
Experience
Non-Executive Director
BA Acc, Dip SIA, F Fin
Mr Henty has extensive experience in the Australian securities
markets. He has worked for nearly 30 years in stockbroking and
investments markets. His experience covers the equities, derivatives
and fixed interest markets and most aspects of the securities industry
from dealing and advice through to management, capital raising,
investment management and private investment.
Interest in Shares and Options
Shareholding: 20,712,583 Optionholding: 1,000,000
Directorships held in other listed entities
during the three years prior to the current
year
None
Non-Executive Director
- 19 -
DIRECTORS’ REPORT
Mr Timothy Markwell
Qualifications
Experience
PREDICTIVE DISCOVERY LIMITED
30 JUNE 2015
BSc (Hons), GradDipAppFin, MAusIMM
Mr Markwell is a geologist and has worked for 20 years in the
resources and finance industries. He is currently African Lion 3
Limited’s manager based in Melbourne. Previously Mr Markwell
worked for LinQ Resources Fund as an investment manager and as a
resource analyst for Perth broker DJ Carmichael. He has also worked
as a geologist for BHP-Billiton, Golder Associates, Anaconda Nickel,
Great Central Mines and Reynolds.
Interest in Shares and Options
Shareholding: Nil
Optionholding: Nil
Directorships held in other listed entities
during the three years prior to the current
year
Aurora Minerals Ltd
Celamin Holdings NL
MEETINGS OF DIRECTORS
During the financial year, 16 meetings / circular resolutions of directors (including committees of directors) were held.
Attendances by each director at meetings during the year were as follows:
Directors' Meetings
Number eligible to
attend
Number attended
Mr Phillip Jackson
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Timothy Markwell
4
2
6
6
6
4
2
6
6
6
INDEMNIFYING OFFICERS OR AUDITORS
The group has paid premiums to insure directors against liabilities for costs and expenses incurred by them in
defending legal proceedings arising from their conduct while acting in the capacity of director of the group, other than
conduct involving a wilful breach of duty in relation to the group. The terms and conditions of the insurance are
confidential and cannot be disclosed.
OPTIONS
At the date of this report, the unissued ordinary shares of Predictive Discovery Limited under option, including those
options issued during the year and since 30 June 2015 to the date of this report are as follows:
Grant Date
5 December 2012
27 March 2013
Date of Expiry
30 October 2015
31 March 2017
Exercise Price
Number under Option
$0.15
$0.022
TOTAL
2,000,000
8,000,000
10,000,000
During the year ended 30 June 2015, no ordinary shares of Predictive Discovery Limited were issued on the
exercise of options granted.
- 20 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2015
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied for leave of Court to bring proceeding on behalf of the group or intervene in any proceedings
to which the group is a party for the purpose of taking responsibility on behalf of the group for all or any part of those
proceedings.
The group was not a party to any such proceeding during the year.
NON AUDIT SERVICES
The Board of Directors in accordance with the advice from the audit committee is satisfied that no provision of non-
audit services was provided by the auditors during the year.
AUDITOR’S INDEPENDENCE DECLARATION
The auditors’ independence declaration for the year ended 30 June 2015 has been received and can be found on
page 10 of the financial report.
REMUNERATION REPORT (AUDITED)
REMUNERATION POLICY
It is the policy of the Company that, except in special circumstances, non-executive directors normally be
remunerated by way of fixed fees, should not receive a bonus or options and should not be provided with retirement
benefits other than statutory superannuation.
The Board, within the limit pre-approved by shareholders, determines fees payable to individual non-executive
directors. The remuneration level of any executive director or other senior executive is determined by the Board
after taking into consideration levels that apply to similar positions in comparable companies in Australia and taking
account of the individual’s possible participation in any equity based remuneration scheme. The Board may use
industry wide data gathered by independent remuneration experts annually as its point of reference. Options or
shares issued to any director pursuant to any equity based remuneration scheme require approval by shareholders
prior to their issue. Options or shares granted to senior executives who are not directors are issued by resolution of
the Board.
It is the policy of the Company that persons to whom options have been issued should not enter into any transaction
in any associated product which is designed to limit the economic risk of participating in unvested entitlements under
an equity based remuneration scheme.
There are no schemes for retirement benefits, other than the payment of the statutory superannuation contribution
for non-executive and executive directors.
All executives receive a base salary (which is based on factors such as qualifications, expertise, experience etc.),
superannuation and fringe benefits and are eligible for the grant of options under the Employee Option Plan.
The Board policy is to remunerate non-executive directors at market rates for comparable companies for the time,
commitment and responsibilities.
The fees payable to individual non-executive directors must be determined by the Board within the aggregate sum of
$500,000 per annum provided for under clause 21.1 of the constitution. That aggregate sum can only be increased
with the prior approval of the shareholders of the Company at a general meeting. A non-executive director is entitled
to a refund of approved expenditure and may also receive payments for consultancy work contracted for and
performed separately on the Company’s behalf.
The Company’s policy for determining the nature and amount of emoluments of Board members and senior
executives of the Company is as follows:
- 21 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2015
The remuneration structure for executive officers, including executive directors, is based on a number of factors,
including length of service, particular experience of the individual concerned, and overall performance of the
Company. The contracts for service between the Company, Directors and executives are on a continuing basis the
terms of which are not expected to change in the immediate future.
PERFORMANCE-BASED REMUNERATION
Performance based remuneration for key management personnel is limited to granting of options.
RELATIONSHIP BETWEEN REMUNERATION POLICY AND COMPANY PERFORMANCE
The remuneration policy has been tailored to increase goal congruence between shareholders, directors and
executives. The issue of options in past years to the majority of directors and executives is to encourage the
alignment of personal and shareholder interests. The company believes this policy will be effective in increasing
shareholder wealth.
PERFORMANCE CONDITIONS LINKED TO REMUNERATION
The group’s remuneration of key management personnel does not include any performance conditions.
EMPLOYMENT DETAILS OF MEMBERS OF KEY MANAGEMENT PERSONNEL AND OTHER EXECUTIVES
The following table provides employment details of persons who were, during the financial year, members of key
management personnel of The Group, and to the extent different, among the five Group executives or company
executives receiving the highest remuneration. The table also illustrates the proportion of remuneration that was
performance and non-performance-based and the proportion of remuneration received in the form of options.
Key Management
Personnel
Position held during the
year ended 30 June 2015
Non-salary
cash-based
incentives
%
Options/
Rights
%
Fixed
Salary/Fees
%
Mr Phillip Jackson
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Ian Hobson
Mr Eric Moore
Non-Executive Chairman
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Company Secretary
Company Secretary
-
-
-
-
-
100
-
-
-
-
-
-
-
-
100
100
100
100
100
-
-
Total
%
100
100
100
100
100
100
-
The employment terms and conditions of key management personnel and group executives are formalised upon
each Director's appointment. All non-executive directors are remunerated on a monthly basis with no fixed term or
termination benefits.
Paul Roberts, Managing Director, has entered into a contract of employment that requires 12 months’ notice of
voluntary termination of employment that entitles Mr Roberts to $180,000 as a termination benefit.
REMUNERATION DETAILS FOR THE PERIOD ENDED 30 JUNE 2015
The following table of benefits and payment details, in respect to the financial year, the components of remuneration
for each member of the key management personnel of the group and, to the extent different, the five group
executives and five company executives receiving the highest remuneration:
- 22 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ REPORT
30 JUNE 2015
Table of Benefits and Payments for the Period Ended 30 June 2015
Key Management Personnel
Mr Philip Jackson(1)(5)
Mr Phillip Harman(2)
Mr Paul Roberts
Mr Philip Henty(5)
Mr Tim Markwell(5)
Mr Ian Hobson(3)
Mr Eric Moore(4)
Total Key Management
Personnel
Salary,
fees and
leave
$
26,041
-
12,500
46,825
164,384
164,759
30,725
35,000
32,812
28,194
72,550
91,975
-
-
339,012
366,753
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
2015
2014
Pension
and super-
annuation Other
$
$
Other
$
Shares/
Units
$
Options/
Rights
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,175
15,616
15,240
2,087
-
-
-
-
-
-
-
17,703
18,415
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
$
26,041
-
12,500
59,044
-
-
-
9,044
-
180,000
27,123
207,132
-
9,044
-
9,044
-
32,812
44,044
32,812
37,238
72,550
9,044
101,019
-
-
-
-
-
356,715
63,299
448,467
(1) Appointed 4 December 2014
(2) Resigned 25 November 2014
(3) Resigned 7 April 2015
(4) Appointed 7 April 2015. Mr Moore received no remuneration from the Company. Parent Aurora Minerals Limited provides
company secretarial, accounting and bookkeeping services to the Company under an Administration Services Agreement at the
rate of $79,200 per annum.
(5) The non-executive directors of the company agreed to a 25% reduction in directors’ fees in recognition of the Company’s cash
position.
SECURITIES RECEIVED THAT ARE NOT PERFORMANCE-BASED
No members of key management personnel received securities during the period which were not dependent upon
the performance of the group’s share price as part of their remuneration package.
CASH BONUSES, PERFORMANCE-RELATED BONUSES AND SHARE-BASED PAYMENTS
Options were granted as remuneration during the year to key management personnel and other executives as set
out in notes 16 and 22.
END OF THE REMUNERATION REPORT
Signed in accordance with a resolution of the Board of Directors:
Paul Roberts
Managing Director
18 September 2015
- 23 -
AUDITOR’S INDEPENDENCE DECLARATION
UNDER S 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF PREDICTIVE DISCOVERY LIMITED & CONTROLLED ENTITIES
I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015, there
have been:
i.
no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
ii.
no contraventions of any applicable code of professional conduct in relation to the audit.
NEXIA MELBOURNE
ABN 16 847 721 257
ANDREW JOHNSON
Partner
Audit & Assurance Services
Melbourne
18 September 2015
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2015
Finance income
Other income
Share based payments
Administrative Payments
Consolidated
2015
$
2014
$
Note
9,267
257,036
25,106
-
-
(131,467)
(1,055,013)
(1,400,827)
Foreign exchange gain / (expense)
48,217
(31,326)
Impairment of exploration
(6,320,272)
(1,026,461)
Exploration expenditure pre-right to tenure
(124)
(24,907)
Profit (loss) before income taxes
(7,060,889)
(2,589,882)
Income tax expense
2
-
-
Profit (loss) from continuing operations
(7,060,889)
(2,589,882)
Other comprehensive income
3,170
158,737
Total comprehensive income for the year
(7,057,719)
(2,431,145)
Profit attibutable to:
Members of the parent entity
(7,057,719)
(2,431,145)
(7,057,719)
(2,431,145)
Basic (loss) per share (cents per share)
Diluted (loss) per share (cents per share)
12
12
(1.281)
(1.281)
(0.818)
(0.818)
These financial statements should be read in conjunction with the accompanying notes
- 25 -
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF
FINANCIAL POSITION
for the year ended 30 June 2015
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Exploration expenditure
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Provisions
TOTAL CURRENT LIABILITIES
Trade and other payables
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Accumulated losses
TOTAL EQUITY
Note
2015
$
2014
$
Consolidated
3
4
5
6
7
9
7
717,648
188,141
950,825
74,939
905,789
1,025,764
180,703
10,338,343
303,885
15,639,370
10,519,046
15,943,255
11,424,835
16,969,019
322,522
20,285
350,802
19,509
342,807
370,311
-
-
342,807
100,000
100,000
470,311
11,082,028
16,498,708
10
11
24,180,869
1,961,416
(15,060,257)
22,539,830
1,958,246
(7,999,368)
11,082,028
16,498,708
These financial statements should be read in conjunction with the accompanying notes
- 26 -
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2015
2015
ORDINARY
SHARES
$
ACCUMULATED
LOSSES
$
SHARE
BASED
PAYMENTS
RESERVE
$
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$
TOTAL
$
Balance at 1 July 2014
22,539,830
(7,999,368)
508,931
1,449,315
16,498,708
Profit/(loss) attributable to
members of the parent entity
Other comprehensive income
Total comprehensive income
for the year
-
-
-
(7,060,889)
-
(7,060,889)
Shares issued during the year
1,857,784
Transaction costs
(216,745)
Share-based payments
-
-
-
-
Sub-total
1,641,039
(7,060,889)
-
-
-
-
-
-
-
-
(7,060,889)
3,170
3,170
3,170
(7,057,719)
-
-
-
1,857,784
(216,745)
-
3,170
(5,416,680)
Balance at 30 June 2015
24,180,869
(15,060,257)
508,931
1,452,485
11,082,028
2014
ORDINARY
SHARES
$
ACCUMULATED
LOSSES
$
SHARE
BASED
PAYMENTS
RESERVE
$
FOREIGN
CURRENCY
TRANSLATIO
N RESERVE
$
TOTAL
$
Balance at 1 July 2013
19,942,017
(5,409,486)
377,464
1,290,578
16,200,573
Profit/(loss) attributable to
members of the parent entity
Other comprehensive income
Total comprehensive income
for the year
-
-
-
(2,589,882)
-
(2,589,882)
Shares issued during the year
2,658,461
Transaction costs
Share-based payments
(60,647)
-
-
-
-
-
-
-
-
-
131,467
-
(2,589,882)
158,737
158,737
158,737
(2,431,145)
-
-
-
2,658,461
(60,647)
131,467
Sub-total
2,597,814
(2,589,882)
131,467
158,737
298,136
Balance at 30 June 2014
22,539,830
(7,999,368)
508,931
1,449,315
16,498,708
These financial statements should be read in conjunction with the accompanying notes
- 27 -
PREDICTIVE DISCOVERY LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June 2015
CASH FROM OPERATING ACTIVITIES:
Receipts from customers
GST receipts/(payments)
Note
2015
$
2014
$
257,036
(2,572)
-
2,754
Payments to suppliers and employees
(1,187,668)
(1,147,072)
Net cash provided by (used in) operating activities
21
(933,204)
(1,144,318)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received
Proceeds from refunds of tenement acquisitions
9,267
18,985
21,631
-
Proceeds from sales of property, plant and equipment
-
54,776
Purchase of property, plant and equipment
(5,606)
-
Payments for exploration expenditure
(1,005,780)
(1,949,111)
Net cash provided by (used in) investing activities
(983,134)
(1,872,704)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares
Payment of share issue costs
1,857,784
2,658,461
(216,747)
(60,647)
Net cash from financing activities
1,641,037
2,597,814
Foreign exchange differences
42,124
17,624
Net cash used by other activities
Net increase (decrease) in cash held
Cash and cash equivalents at beginning of period
42,124
17,624
(275,301)
950,825
(419,209)
1,352,410
Cash and cash equivalents at end of financial period
3
717,648
950,825
These financial statements should be read in conjunction with the accompanying notes
- 28 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
This financial report includes the consolidated financial statements and notes of Predictive Discovery Limited and
controlled entities (the “group”).
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Predictive Discovery Limited is a company limited by shares, incorporated and domiciled in Australia.
The financial report is a general purpose financial statement that has been prepared in accordance with
Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements
of the Australian Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a
financial report containing relevant and reliable information about transactions, events and conditions.
Compliance with Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards. Material accounting policies adopted in the
preparation of this financial report are presented below and have been consistently applied unless otherwise
stated.
The financial report has been prepared on an accruals basis and is based on historical costs, modified,
where applicable, by the measurement at fair value of selected financial assets and financial liabilities.
These financial statements are presented in Australian dollars, rounded to the nearest dollar.
(A)
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by
Predictive Discovery Limited at the end of the reporting period. A controlled entity is any entity over which
Predictive Discovery Limited has the power to govern the financial and operating policies so as to obtain
benefits from the entity's activities. Control will generally exist when the parent owns, directly or indirectly
through subsidiaries, more than half of the voting power of an entity. In assessing the power to govern, the
existence and effect of holdings of actual and potential voting rights are also considered.
Where controlled entities have entered or left the group during the year, the financial performance of those
entities are included only for the period of the year that they were controlled. A list of controlled entities is
contained in Note 18 to the financial statements.
As at reporting date, the assets and liabilities of all controlled entities have been incorporated into the
consolidated financial statements as well as their results for the year then ended. Where controlled entities
have entered (left) the group during the year, their operating results have been included (excluded) from the
date control was obtained (ceased).
In preparing the consolidated financial statements, all inter-group balances and transactions between
entities in the group have been eliminated on consolidation. Accounting policies of subsidiaries have been
changed where necessary to ensure consistency with those adopted by the parent entity.
Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent,
are shown separately within the Equity section of the consolidated statement of financial position and
consolidated statement of comprehensive income. The non-controlling interests in the net assets comprise
their interests at the date of the original business combination and their share of changes in equity since that
date.
Subsidiaries are accounted for in the parent entity at cost.
Business Combinations
Business combinations occur where an acquirer obtains control over one or more businesses and results in
the consolidation of its assets and liabilities.
A business combination is accounted for by applying the acquisition method, unless it is a combination
involving entities or businesses under common control. The acquisition method requires that for each
business combination one of the combining entities must be identified as the acquirer (i.e. parent entity).
The business combination will be accounted for as at the acquisition date, which is the date that control over
the acquiree is obtained by the parent entity.
- 29 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(A) PRINCIPLES OF CONSOLIDATION (continued)
Business Combinations
At this date, the parent shall recognise, in the consolidated accounts, and subject to certain limited
exceptions, the fair value of the identifiable assets acquired and liabilities assumed. In addition, contingent
liabilities of the acquiree will be recognised where a present obligation has been incurred and its fair value
can be reliably measured.
The acquisition may result in the recognition of goodwill or a gain from a bargain purchase. The method
adopted for the measurement of goodwill will impact on the measurement of any non-controlling interest to
be recognised in the acquiree where less than 100% ownership interest is held in the acquiree.
The acquisition date fair value of the consideration transferred for a business combination plus the
acquisition date fair value of any previously held equity interest shall form the cost of the investment in the
separate financial statements. Consideration may comprise the sum of the assets transferred by the
acquirer, liabilities incurred by the acquirer to the former owners of the acquiree and the equity interests
issued by the acquirer.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive
income. Where changes in the value of such equity holdings had previously been recognised in other
comprehensive income, such amounts are recycled to profit or loss.
Included in the measurement of consideration transferred is any asset or liability resulting from a contingent
consideration arrangement. Any obligation incurred relating to contingent consideration is classified as
either a financial liability or equity instrument, depending upon the nature of the arrangement. Rights to
refunds of consideration previously paid are recognised as a receivable. Subsequent to initial recognition,
contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted
for within equity. Contingent consideration classified as an asset or a liability is remeasured each reporting
period to fair value through the statement of comprehensive income unless the change in value can be
identified as existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of
comprehensive income.
(B)
REVENUE AND OTHER INCOME
Revenue is measured at the fair value of the consideration received or receivable after taking into account
any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of
finance and is discounted at a rate of interest that is generally accepted in the market for similar
arrangements. The difference between the amount initially recognised and the amount ultimately received is
interest revenue.
Interest revenue is recognised using the effective interest rate method. The effective interest rate method
uses the effective interest rate which is the rate that exactly discounts the estimated future cash receipts
over the expected life of the financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
(C)
BORROWING COSTS
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily
take a substantial period of time to prepare for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in income in the period in which they are incurred.
(D)
INCOME TAX
The income tax expense (revenue) for the year comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated
using applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period.
Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered
from) the relevant taxation authority.
- 30 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(D)
INCOME TAX (continued)
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well as unused tax losses. Current and deferred tax expense (income) is charged or
credited directly to equity instead of the profit or loss when the tax relates to items that are credited or
charged directly to equity.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
also result where amounts have been fully expensed but future tax deductions are available. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at
the end of the reporting period. Their measurement also reflects the manner in which management expects
to recover or settle the carrying amount of the related asset or liability.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will be available against which the benefits of the deferred
tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint
ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the
temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable
future.
Current assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur.
Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred
tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation
and settlement of the respective asset and liability will occur in future periods in which significant amounts of
deferred tax assets or liabilities are expected to be recovered or settled.
EMPLOYEE BENEFITS
Provision is made for the company's liability for employee benefits arising from services rendered by
employees to the end of the reporting period. Employee benefits that are expected to be settled within one
year have been measured at the amounts expected to be paid when the liability is settled. Employee
benefits payable later than one year have been measured at present value of the estimated future cash
outflows to be made for those benefits. In determining the liability, consideration is given to employee wage
increases and the probability that the employee may satisfy vesting requirements. Those cashflows are
discounted using market yields on national government bonds with terms to maturity that match the
expected timing of cashflows.
Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months
are measured at the present value of the estimated future cash outflows to be made by The Group in
respect of services provided by employees up to reporting date.
PROVISIONS
Provisions are recognised when The Group has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.
The liability for long service leave is recognised in current and non-current liabilities, depending on the
unconditional right to defer settlement of the liability for at least 12 months after the reporting date.
FOREIGN CURRENCY TRANSACTIONS AND BALANCES
The functional currency of each of the group's entities is measured using the currency of the primary
economic environment in which that entity operates. The consolidated financial statements are presented in
Australian dollars which is the parent entity's functional and presentation currency. All other companies
within The Group have Australian dollars as their functional currency.
(E)
(F)
(G)
- 31 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
(G)
(H)
(I)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
FOREIGN CURRENCY TRANSACTIONS AND BALANCES (continued)
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at
the date of the transaction. Foreign currency monetary items are translated at the year-end exchange rate.
Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of
the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date
when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the consolidated
statement of comprehensive income, except where deferred in equity as a qualifying cash flow or net
investment hedge.
Exchange differences arising on the translation of non-monetary items are recognised directly in equity to
the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is
recognised in the consolidated statement of comprehensive income.
The financial results and position of foreign operations whose functional currency is different from the
group's presentation currency are translated as follows:
•
•
•
assets and liabilities are translated at year-end exchange rates prevailing at that reporting date;
income and expenses are translated at average exchange rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the group's
foreign currency translation reserve in the consolidated statement of financial position. These differences
are recognised in the consolidated statement of comprehensive income in the period in which the operation
is disposed.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly
liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are
shown within short term borrowings in current liabilities in the statement of financial position.
FINANCIAL INSTRUMENTS
Initial recognition and measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual
provisions to the instrument. For financial assets, this is the equivalent to the date that the group commits
itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted).Financial instruments
are initially measured at fair value plus transactions costs, except where the instrument is classified 'at fair
value through profit or loss', in which case transaction costs are expensed to profit or loss immediately.
Classification and subsequent measurement
Financial instruments are subsequently measured at either of fair value, amortised cost using the effective
interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a
liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market
are used to determine fair value. In other circumstances, valuation techniques are adopted.
Amortised cost is calculated as:
(a)
the amount at which the financial asset or financial liability is measured at initial recognition;
(b)
less principal repayments;
(c) plus or minus the cumulative amortisation of the difference, if any, between the amount initially
recognised and the maturity amount calculated using the effective interest method; and
(d)
less any reduction for impairment.
The effective interest method is used to allocate interest income or interest expense over the relevant period
and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including
fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be
reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial
asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the
carrying value with a consequential recognition of an income or expense in profit or loss.
- 32 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
(I)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
FINANCIAL INSTRUMENTS (continued)
The group does not designate any interests in subsidiaries, associates or joint venture entities as being
subject to the requirements of accounting standards specifically applicable to financial instruments.
Financial assets at fair value through profit or loss
(i)
Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading for the
purpose of short term profit taking, derivatives not held for hedging purposes, or when they are designated
as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial
assets is managed by key management personnel on a fair value basis in accordance with a documented
risk management or investment strategy. Such assets are subsequently measured at fair value with
changes in carrying value being included in profit or loss.
Loans and receivables
(ii)
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are subsequently measured at amortised cost.
Loans and receivables are included in current assets, except for those which are not expected to mature
within 12 months after the end of the reporting period. (All other loans and receivables are classified as non-
current assets).
Held-to-maturity investments
(iii)
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or
determinable payments, and it is the group's intention to hold these investments to maturity. They are
subsequently measured at amortised cost.
Held-to-maturity investments are included in non-current assets, except for those which are expected to
mature within 12 months are the end of the reporting period. (All other investments are classified as current
assets).
If during the period the group sold or reclassified more than an insignificant amount of the held to maturity
investments before maturity, the entire held-to-maturity investments category would be tainted and
reclassified as available for sale.
Available for sale financial assets
(iv)
Available for sale financial assets are non-derivative financial assets that are either not suitable to be
classified into other categories of financial assets due to their nature, or they are designated as such by
management. They comprise investments in the equity of other entities where there is neither a fixed
maturity nor fixed or determinable payments.
Available for sale financial assets are included in non-current assets, except for those which are expected to
mature within 12 months after the end of the reporting period. (All other financial assets are classified as
current assets).
Financial liabilities
(v)
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised
cost.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset
is transferred to another party whereby the entity no longer has any significant continuing involvement in the
risks and benefits associated with the asset. Financial liabilities are derecognised where the related
obligations are either discharged, cancelled or expired. The difference between the carrying value of the
financial liability extinguished or transferred to another party and the fair value of consideration paid,
including the transfer of non-cash assets or liabilities assumed is recognised in profit or loss.
- 33 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
(J)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
PROPERTY, PLANT AND EQUIPMENT
Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where
applicable, any accumulated depreciation and impairment losses.
Plant and Equipment
Plant and equipment are measured on the cost basis.
Depreciation
The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset's useful life
to the group commencing from the time the asset is held ready for use.
Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the
estimated useful lives of the improvements.
The estimated useful lives used for each class of depreciable assets are:
Class of Fixed Asset
Plant and Equipment
Useful Life
2 - 20 years
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each
reporting period.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
gains and losses are included in the consolidated statement of comprehensive income.
Property, plant and equipment is derecognised and removed from the consolidated statement of financial
position on disposal or when no future economic benefits are expected. Gains and losses from
derecognition are measured as the difference between the net disposal proceeds, if any, and the carrying
amount and are recognised in profit or loss.
Subsequent costs are included in the property, plant and equipment's carrying value or recognised as a
separate asset when it is probable that future economic benefits associated with the item will be realised and
the cost of the item can be measured reliably. All other repairs and maintenance are recognised in profit or
loss.
(K)
EXPLORATION AND DEVELOPMENT EXPENDITURE
Costs Carried Forward
Costs arising from exploration and evaluation activities are carried forward where the rights to tenure for the
area of interest are current and such costs are expected to be recouped through successful development, or
by sale, or where exploration and evaluation activities have not, at reporting date, reached a stage to allow a
reasonable assessment regarding the existence of economically recoverable reserves.
Costs carried forward in respect of an area of interest that is abandoned are written off in the period in which
the decision to abandon is made.
Contributions received from third parties in exchange for participating interests in exploration and evaluation
tenements (e.g. as part of farm out arrangements) are netted off against the costs carried forward in respect
of those tenements in which the third party acquires a participating interest.
(L)
IMPAIRMENT OF ASSETS
At each reporting date, the group assesses whether there is any indication that an asset may be impaired.
The assessment will include considering external sources of information including, dividends received from
subsidiaries, associates or jointly controlled entities deemed to be out of pre-acquisition profits. If such an
indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the
asset, being the higher of the asset's fair value less costs to sell and value in use to the asset's carrying
value. Any excess of the asset's carrying value over its recoverable amount is expensed to the consolidated
statement of comprehensive income.
- 34 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
(L)
(M)
(N)
(O)
(P)
(Q)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
IMPAIRMENT OF ASSETS (continued)
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in
respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the
revaluation surplus for that same class of asset.
Non-financial assets, other than inventories, deferred tax assets, assets from employee benefits, investment
properties and deferred acquisition costs, are assessed for any indication of impairment at the end of each
reporting period. Any indication of impairment requires formal testing of impairment by comparing the
carrying amount of the asset to an estimate of the recoverable amount of the asset. An impairment loss is
calculated as the amount by which the carrying amount of the asset exceeds the recoverable amount of the
asset.
Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for
impairment annually regardless of whether there is any indication of impairment.
The recoverable amount is the greater of the asset's fair value less costs to sell and its value in use. The
asset's value in use is calculated as the estimated future cash flows discounted to their present value using
a pre-tax rate that reflects current market assessments of the time value of money and the risks associated
with the asset. Assets that cannot be tested individually for impairment are grouped together into the
smallest group of assets that generates cash inflows (the asset's cash generating unit).
Impairment losses are recognised in profit or loss. Impairment losses are allocated first, to reduce the
carrying amount of any goodwill allocated to cash generating units, and then to other assets of the group on
a pro rata basis.
Assets other than goodwill are assessed at the end of each reporting period to determine whether previously
recognised impairment losses may no longer exist or may have decreased. Impairment losses recognised
in prior periods for assets other than goodwill are reversed up to the carrying amounts that would have been
determined had no impairment loss been recognised in prior periods.
TRADE AND OTHER PAYABLES
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and
services received by the group during the reporting period which remain unpaid. The balance is recognised
as a current liability with the amounts normally paid within 30 days of recognition of the liability.
GOODS AND SERVICES TAX (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part
of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
consolidated statement of financial position are shown inclusive of GST.
LEASES
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset
but not the legal ownership that are transferred to entities in the group are classified as finance leases.
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the
fair value of the leased property or the present value of the minimum lease payments, including any
guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and
the lease interest expense for the period.
EARNINGS PER SHARE
Basic loss per share is calculated as net loss attributable to members of the group divided by the weighted
average number of ordinary shares. Diluted loss per share is calculated by adjusting the net loss
attributable to members of the group and the number of shares outstanding for the effects of all dilutive
potential ordinary shares, which include shares options.
CONTRIBUTED EQUITY
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown as a deduction, net of tax, from the proceeds.
- 35 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
(R)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
SHARE-BASED PAYMENT TRANSACTIONS
Employees of the group receive remuneration in the form of share based payment transactions, whereby
employees render services in exchange for equity instruments ("equity settled transactions"). When the
goods or services acquired in a share based payment transaction do not qualify for recognition as assets,
they are recognised as expenses.
The cost of equity settled transactions and the corresponding increase in equity is measured at the fair value
of the goods or services acquired. Where the fair value of the goods or services received cannot be reliably
estimated, the fair value is determined indirectly by the fair value of the equity instruments using the Black
Scholes option valuation technique.
Equity-settled transactions that vest after employees complete a specified period of service are recognised
as services are received during the vesting period with a corresponding increase in equity.
(S)
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The directors evaluate estimates and judgments incorporated into the financial statements based on
historical knowledge and best available current information. Estimates assume a reasonable expectation of
future events and are based on current trends and economic data, obtained both externally and within The
Group.
Key estimates – Impairment
The group assesses impairment at the end of each reporting period by evaluating conditions specific to the
group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are
reassessed using fair value less cost to sell or value-in-use calculations which incorporate various key
assumptions.
Key judgements – Exploration and Evaluation Expenditure
The group capitalises expenditure relating to exploration and evaluation where it is considered likely to be
recoverable or where the activities have not reached a stage which permits a reasonable assessment of the
existence of reserves. $10,338,343 has been capitalised as at 30 June 2015 (see note 6). While there are
certain areas of interest from which no reserves have been extracted, the directors are of the continued
belief that such expenditure should not be written off since feasibility studies in such areas have not yet
concluded and there are no facts of circumstances that suggest the carrying amounts of the exploration and
evaluation assets recognised exceed their recoverable amount.
In assessing the recoverability of the carrying amounts, the Directors have determined that as with similar
companies, future capital raisings will be required in order to continue the exploration and development of
the company's mining tenements (some subject to an option payment) to achieve a position where they can
prove exploration reserves. Should there be no funding available, exploration of the areas of interest may
be put on hold. The recoverability of the exploration asset is dependent upon the continued exploration of
each area of interest.
Key Judgements – Share-based payment transactions
The group measures the cost of equity settled transactions with employees by reference to the fair value of
the equity instruments at the date at which they are granted. The fair value is determined using the Black
Scholes method. The related assumptions are detailed in note 22. The accounting estimates and
assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts
of assets and liabilities within the next annual reporting period but may impact expenses and equity.
Key Judgements - Going Concern
For the year ended 30 June 2015 the Group made a loss of $7,057,719 (2014: loss $2,431,145).
Nothwithstanding this the financial report has been prepared using the going concern basis. The Directors
have determined that as with similar companies, future capital raisings will be required in order to continue
the exploration and development of the company's mining tenements (some subject to an option payment)
and meet operational expenditure at current levels to achieve a position where they can prove exploration
reserves. The ability of the company to continue as a going concern is dependent upon the company
raising additional capital sufficient to meet the company's exploration commitments and operational
commitments. Should there be no funding available, exploration of the areas of interest may be put on
hold. The recoverability of the exploration asset is dependent upon the continued exploration of each area
of interest.
- 36 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
(S)
(T)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)
The Directors have prepared a cash flow forecast for the foreseeable future reflecting this expectation and
their effect upon the company. The achievement of the forecast is dependent upon the future capital
raising, the outcome of which is uncertain.
Key Judgements - Recoverability of Intercompany Loan
Within Non-current assets of the parent entity (see note 20) there is a loan due from the 100% subsidiaries
of $16,829,444 which is considered fully recoverable. The recoverability of this loan is dependent upon the
successful development or sale of exploration assets in Burkina Faso.
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS
In the current year, the group has adopted all of the new and revised Standards and Interpretations issued
by the AASB that are relevant to its operations and effective for the current annual reporting period. The
adoption of these new and revised Standards and Interpretations has not resulted in a significant or material
change to the group’s accounting policies.
New accounting standards issued but not yet effective
Accounting Standards and Interpretations issued by the AASB that are not yet mandatorily applicable to the
Group, together with an assessment of the potential impact of such pronouncements on the Group when
adopted in future periods, are discussed below:
AASB 9: Financial Instruments and associated Amending Standards (applicable to annual reporting
periods beginning on or after 1 January 2018)
The Standard will be applicable retrospectively (subject to the provisions on hedge accounting outlined
below) and includes revised requirements for the classification and measurement of financial
instruments, revised recognition and derecognition requirements for financial instruments and simplified
requirements for hedge accounting.
The key changes that may affect the group on initial application include certain simplifications to the
classification of financial assets, simplifications to the accounting of embedded derivatives, upfront
accounting for expected credit loss, and the irrevocable election to recognise gains and losses on
investments in equity instruments that are not held for trading in other comprehensive income. AASB 9
also introduces a new model for hedge accounting that will allow greater flexibility in the ability to hedge
risk, particularly with respect to hedges of non-financial items. Should the entity elect to change its
hedge policies in line with the new hedge accounting requirements of the Standard, the application of
such accounting would be largely prospective.
Although the directors anticipate that the adoption of AASB 9 may have an impact on the Group’s
financial instruments, including hedging activity, it is impracticable at this stage to provide a reasonable
estimate of such impact.
AASB 15: Revenue from Contracts with Customers (applicable to annual reporting periods
commencing on or after 1 January 2017)
When effective, this Standard will replace the current accounting requirements applicable to revenue
with a single, principles-based model. Except for a limited number of exceptions, including leases, the
new revenue model in AASB 15 will apply to all contracts with customers as well as non-monetary
exchanges between entities in the same line of business to facilitate sales to customers and potential
customers.
The core principle of the Standard is that an entity will recognise revenue to depict the transfer of
promised goods or services to customers in an amount that reflects the consideration to which the
entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15
provides the following five-step process:
identify the contract(s) with a customer;
identify the performance obligations in the contract(s);
determine the transaction price;
allocate the transaction price to the performance obligations in the contract(s); and
recognise revenue when (or as) the performance obligations are satisfied.
- 37 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
(T)
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS (continued)
This Standard will require retrospective restatement, as well as enhanced disclosures regarding
revenue.
Although the directors anticipate that the adoption of AASB 15 may have an impact on the group’s
financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.
This financial report includes the consolidated financial statements and notes of Predictive Discovery
Limited and controlled entities (The Group).
2
INCOME TAX EXPENSE
(A)
THE COMPONENTS OF TAX EXPENSE COMPRISE:
Current tax
Deferred tax
(a)
Income tax recognised in profit or loss
Tax expense / (revenue) comprises:
Current tax expense / (revenue)
Under / (over) provision in prior year
Deferred tax expense / (revenue) relating to the origination and
reversal of temporary differences
Tax Losses Not Recognised
Total tax expense / (revenue)
2015
$
2014
$
-
-
-
-
-
-
(723,094)
17,736
(1,022,178)
(140,290)
(1,510,484)
2,215,842
-
190,342
972,126
-
The prima facie income tax expense on pre-tax accounting profit
from operations reconciles to the income tax expense in the
financial statements as follows:
Profit / (loss) from operations
(7,057,715)
(2,431,145)
Income tax expense (revenue) calculated at 30% (2014: 30%)
Under / (over) provision in prior year
Tax Effect of Employee Options
Tax effect of FX Loss
Tax Effect of Capital Raising Costs Not Recognised
Tax Effect on Other Items
Tax Losses Not Recognised
Income tax rate
(2,117,315)
17,736
-
(15,417)
(101,037)
191
(729,343)
(140,290)
23,763
(38,223)
(88,033)
-
2,215,842
972,126
-
-
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by the Australian corporate
entities on taxable profits under the Australian tax law. There has been no change in the corporate tax rate when
compared with the previous year.
- 38 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
3
CASH AND CASH EQUIVALENTS
Cash at bank
2015
$
717,648
717,648
2014
$
950,825
950,825
Of the cash at bank amount, $9,818 is provided as security to the ANZ Bank for a bank guarantee.
4
TRADE AND OTHER RECEIVABLES
Other receivables
5
PROPERTY, PLANT AND EQUIPMENT
PLANT AND EQUIPMENT
At cost
Accumulated depreciation
Total plant and equipment
2015
$
188,141
188,141
2014
$
74,939
74,939
2015
$
2014
$
545,222
(364,519)
180,703
589,089
(285,204)
303,885
MOVEMENTS IN CARRYING AMOUNTS
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the
end of the current financial year:
Balance at 30 June 2015
Balance at the beginning of year
Reclassification of assets to exploration
Additions
Disposals
Depreciation expense
Movement in exchange rates
Balance at 30 June 2015
Balance at 30 June 2014
Balance at the beginning of year
Additions
Disposals
Depreciation expense
Movement in exchange rates
Balance at 30 June 2014
Plant and
Equipment
$
Total
$
303,885
(27,297)
5,598
-
(79,077)
(22,406)
180,703
364,969
-
(54,776)
(79,976)
73,668
303,885
303,885
(27,297)
5,598
-
(79,077)
(22,406)
180,703
364,969
-
(54,776)
(79,976)
73,668
303,885
- 39 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
6
EXPLORATION, EVALUATION AND DEVELOPMENT ASSETS
Exploration and evaluation expenditure
2015
$
10,338,343
10,338,343
2014
$
15,639,370
15,639,370
2015
Balance at beginning of the year
Expenditure incurred
Impairment
Movement in exchange rates
Balance at end of the year
2014
Balance at beginning of the year
Expenditure incurred
Impairment
Balance at end of the year
Exploration and
evaluation
$
15,639,370
1,002,766
(6,320,397)
16,604
10,338,343
14,604,406
2,061,425
(1,026,461)
15,639,370
The recoverability of the carrying amount of the exploration and evaluation assets is dependent on successful
development and commercial exploitation, or alternatively, sale of the respective areas of interest. The board has
assessed the exploration and evaluation assets for impairment, using AASB 6 paragraph 20 as a guide. As a result
of this process 15 tenements were impaired during the period.
The budget for future exploration and evaluation expenditure is split by geographical area and not by area of interest
as the allocation of resources will depend upon findings. However, it is acknowledged that the budget allows for
spending on all areas of interest without exclusion. It is anticipated that all expenditure required by agreement or
permit will be met.
In assessing the recoverability of the carrying amounts, reference is made to Note 1 (S) - Key Judgements -
Exploration and Evaluation Expenditure and Going Concern. The Directors have determined that as with similar
companies, future capital raisings will be required in order to continue the exploration and development of the
company's mining tenements (some subject to an option payment) to achieve a position where they can prove
exploration reserves. Should there be no funding available, exploration of the areas of interest may be put on hold.
The recoverability of the exploration asset is dependent upon the continued exploration of each area of interest.
7
TRADE AND OTHER PAYABLES
CURRENT
Trade payables
NON-CURRENT
Other payables
2015
$
2014
$
322,522
322,522
350,802
350,802
2015
$
2014
$
-
-
100,000
100,000
- 40 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
8
TAX ASSETS AND LIABILITIES
Assets
(a)
Current
Income tax refundable
Non-current
Deferred tax asset comprises:
Employee Entitlements
Accruals and payables
Cancelation of Licence
Tax Losses
Amount Not Recognised
Liabilities
(b)
Current
Income tax liabilities
Less: PAYG instalments paid
Income tax payable
Non-current
Deferred tax liability comprises:
Exploration Expenditure
Amount Not Recognised
Net DTA/DTL
Reconciliations
Gross Movements
(c)
(i)
The overall movement in the deferred tax balances is as follows:
Opening balance
Under/(over) provision in prior year
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Deferred tax assets
(ii)
The movement in deferred tax assets for each temporary difference during the
year is as follows:
Employee Entitlements
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Provisions
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
- 41 -
2015
$
2014
$
-
-
-
-
6,086
7,500
54,000
5,825,356
(5,892,942)
-
5,853
9,000
72,000
5,119,999
(5,206,852)
-
-
-
-
-
-
-
(1,080,770)
1,080,770
-
(2,610,522)
2,610,522
-
2,596,330
(17,736)
2,233,578
(4,812,172)
-
1,624,203
140,290
831,837
(2,596,330)
-
5,853
233
(6,086)
-
6,188
(335)
(5,853)
-
-
-
-
-
-
-
-
-
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
8
TAX ASSETS AND LIABILITIES (continued)
Reconciliations (continued)
Deferred tax assets (continued)
(c)
(ii)
Accruals and payables
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Tax Losses
Opening balance
Under/(over) provision in prior year
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
ASX Listing Costs
Opening balance
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Cancellation of Licence
Opening balance/previous amounts not recognised
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
Deferred tax liability
(iii)
Exploration Expenditure
Opening balance
Under / (over) provision in prior year
Credited / (charge) to the income statement
Amount Not Recognised
Closing balance
2015
$
2014
$
9,000
(1,500)
(7,500)
-
11,250
(2,250)
(9,000)
-
5,119,999
(17,736)
723,093
(5,825,356)
4,097,821
-
1,022,178
(5,119,999)
-
-
-
-
-
-
72,000
(18,000)
(54,000)
-
909
(909)
-
-
-
72,000
(72,000)
-
(2,610,522)
-
1,529,752
1,080,770
-
(2,491,965)
140,290
(258,847)
2,610,522
-
The DTL is not recognised as a liability as the future tax benefits are assumed to be available if and when the
deferred tax liability crystalises.
9
PROVISIONS
CURRENT
Employee entitlements
2015
$
2014
$
20,285
20,285
19,509
19,509
- 42 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
10
ISSUED CAPITAL
650,584,343 (2014: 387,865,214) Ordinary shares
Share issue costs written off against issued capital
ORDINARY SHARES
At the beginning of the reporting period
Tenement Purchase
Employee share issue
Placements
Rights Issues
Share Placement Plan
OPTIONS
2015
NO.
387,865,214
-
-
18,750,000
243,969,129
-
650,584,343
2015
$
24,007,040
-
-
150,000
1,707,784
-
25,864,824
2015
$
25,864,824
(1,683,955)
24,180,869
2014
NO.
234,633,856
2,771,462
327,000
129,757,896
-
20,375,000
387,865,214
2014
$
24,007,040
(1,467,210)
22,539,830
2014
$
21,348,580
59,994
6,866
2,265,600
-
326,000
24,007,040
(i)
For information relating to Predictive Discovery Limited employee option plan, including details of options
issued, exercised and lapsed during the financial year and the options outstanding at year end, refer to
Note 22.
11
RESERVES
FOREIGN CURRENCY TRANSLATION RESERVE
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive
income foreign currency translation reserve. The cumulative amount is reclassified to profit or loss when the net
investment is disposed of.
OPTION RESERVE
The option reserve records items recognised as expenses on valuation of employee share options.
12
EARNINGS PER SHARE
Earnings used to calculate basic EPS
2015
$
2014
$
(7,060,889)
(2,589,882)
Weighted average number of ordinary shares outstanding during the year used in calculating basic EPS.
Weighted average number of ordinary shares outstanding during the period -
Number used in calculating basic EPS
Weighted average number of ordinary shares outstanding during the year
used in calculating dilutive EPS
2015
NO.
2014
NO.
551,201,748
316,503,790
551,201,748
316,503,790
Diluted earnings per share is the same as basic earnings per share as the group incurred a loss for the period and
therefore is not considered dilutive.
- 43 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
13
CAPITAL AND LEASING COMMITMENTS
LEASE COMMITMENTS
(A)
Payable - minimum lease payments:
- not later than 12 months
- between 12 months and 5 years
OPTIONS FEE COMMITMENTS
(B)
Payable – minimum lease payments:
– not later than 12 months
– between 12 months and 5 years
Later than 5 years
-
CAPITAL EXPENDITURE COMMITMENTS
(C)
Payable:
- not later than 12 months
- between 12 months and 5 years
more than 5 years
2015
$
2014
$
40,054
164,624
204,678
398,412
166,549
55,516
620,477
20,607
245,802
266,409
322,820
558,834
45,025
926,678
2,852,334
7,695,339
-
10,547,673
2,966,064
7,529,914
57,921
10,553,899
14
FINANCIAL RISK MANAGEMENT
The group's financial instruments consist mainly of deposits with banks, receivables and payables.
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the
accounting policies to these financial statements, are as follows:
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Total Financial Liabilities
Note
2015
$
2014
$
3
4
7
717,648
188,141
905,789
322,522
322,522
950,825
74,939
1,025,764
470,311
470,311
The carrying amounts of these financial instruments approximate their fair values.
- 44 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
14
FINANCIAL RISK MANAGEMENT (continued)
FINANCIAL RISK MANAGEMENT POLICIES
Exposure to key financial risks is managed in accordance with the group’s risk management policy with the objective
to ensure that the financial risks inherent in exploration activities are identified and then managed or kept as low as
reasonably practicable.
The main financial risks that arise in the normal course of business are market risk (including currency risk, interest
rate risk and price risk), credit risk and liquidity risk. Different methods are used to measure and manage these risk
exposures. Liquidity risk is monitored through the ongoing review of available cash and future commitments for
exploration expenditure.
Exposure to liquidity risk is limited by anticipating liquidity shortages and ensures capital can be raise in advance of
shortages. Interest rate risk is managed by limiting the amount of interest bearing loans entered into by The Group. It
is the Board's policy that no speculative trading in financial instruments be undertaken so as to limit expose to price
risk.
Primary responsibility for identification and control of financial risks rests with the Company Secretary, under the
authority of the Board. The Board is apprised of these risks from time to time and agrees any policies that may be
undertaken to manage any of the risks identified.
Details of the significant accounting policies and methods adopted, including criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each financial instrument
are disclosed in Note 1 to the financial statements. The carrying values less the impairment allowance for
receivables and payables are assumed to approximate fair values due to their short term nature. Cash and cash
equivalents are subject to variable interest rates.
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT
(A)
CREDIT RISK
Exposure to credit risk relating to financial assets arises from the potential non-performance by counter
parties of contract obligations that could lead to a financial loss to the group.
The group trades only with recognised, creditworthy third parties.
The group has no customers and consequently no significant exposure to bad debts or other credit risks.
With respect to credit risk arising from financial assets, which comprise cash and cash equivalents and
receivables, the exposure to credit risk arises from default of the counter party, with a maximum exposure
equal to the carrying amount of these instruments. At balance date cash and deposits were held with
Australia and New Zealand Banking Group Limited.
(B)
LIQUIDITY RISK
Liquidity risk arises from the possibility that the group might encounter difficulty in settling its debts or
otherwise meeting its obligations related to financial liabilities.
Prudent liquidity risk management implies maintaining sufficient cash reserves to meet the ongoing
operational requirements of the business. It is the group’s policy to maintain sufficient funds in cash and
cash equivalents. Furthermore, the group monitors its ongoing exploration cash requirements and raises
equity funding as and when appropriate to meet such planned requirements. The group has no undrawn
financing facilities. Trade and other payables, the only financial liability of the group, are due within 6
months.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities.
- 45 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
14
FINANCIAL RISK MANAGEMENT (continued)
SPECIFIC FINANCIAL RISK EXPOSURES AND MANAGEMENT (continued)
(B)
LIQUIDITY RISK (continued)
Cash flows realised from financial assets reflect management's expectation as to the timing of realisation.
Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to
settle financial liabilities reflects the earliest contractual settlement dates and does not reflect management's
expectations that banking facilities will be rolled forward.
Financial liability and financial asset maturity analysis
Within 1 Year
1 to 5 Years
Total Contractual Cash
Flow
2015
$
2014
$
2015
$
2014
$
2015
$
2014
$
Financial liabilities due for
payment
Trade and other payables
Total contractual outflows
Financial assets - cash flows
realisable
Trade and other receivables
Total anticipated inflows
322,522
322,522
450,802
450,802
188,141
188,141
74,939
74,939
The financial assets and liabilities noted above are interest free.
-
-
-
-
-
-
-
-
322,522
322,522
450,802
450,802
188,141
188,141
74,939
74,939
(C)
Interest rate risk
MARKET RISK
i.
The group’s cash flow interest rate risk primarily arises from cash at bank and deposits subject to market
bank rates. At balance date, the group does not have any borrowings. The group does not enter into
hedges. An increase/ (decrease) in interest rates by 1% during the whole of the respective periods would
have led to an increase/(decrease) in both equity and losses of less than $10,000. 1% was thought to be
appropriate because it represents four 0.25 basis point rate rises/falls, which is appropriate in the recent
economic climate. The majority of cash held in a cash management account earns interest income at a rate
of 0.1% p.a.
Foreign exchange risk
ii.
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument
fluctuating due to movement in foreign exchange rates of currencies in which the group holds foreign
currency which are other than the AUD functional currency of the group.
- 46 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
15
OPERATING SEGMENTS
Identification of Reportable Segments
The group has identified its operating segments based on the internal reports that are reviewed and used by the
Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of
resources.
The accounting policies applied for internal purposes are consistent with those applied in the preparation of these
financial statements.
a)
2015
The following is an analysis of the Group’s revenue and results from operations by reportable segment.
Gold
Aust
$
Burkina Faso Cote d’Ivoire
Corporate
$
Total
$
Gold
$
$
Revenue
Interest income
Other income
Expenses
Administration expenses
FX Expense
Exploration expenditure written off
Impairment of Exploration
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Current liabilities
Non-Current liabilities
Net assets
2014
Revenue
Interest income
Expenses
Share based payments
Administration expenses
FX Expense
Exploration expenditure written off
Impairment of Exploration
Loss before tax
Current assets
Exploration expenditure
Plant and Equipment
Current liabilities
Non-current liabilities
Net assets
9,267
257,036
(528,433)
50,332
-
(950)
(212,748)
714,374
-
-
(159,019)
-
555,355
Corporate
$
25,106
(131,467)
(873,425)
(29,456)
-
-
(1,009,242)
825,302
-
-
(199,059)
(100,000)
526,243
-
-
-
-
(124)
-
(124)
-
-
-
-
-
-
-
Gold
Aust
$
-
-
-
-
9,267
257,036
(466,419)
(1,861)
-
(5,919,342)
(6,387,622)
170,866
10,338,343
180,703
(181,914)
-
10,507,998
(60,161)
(254)
-
(399,980)
(460,395)
20,548
-
-
(1,873)
-
18,675
(1,055,013)
48,217
(124)
(6,320,272)
(7,060,889)
905,788
10,338,343
180,703
(342,806)
-
11,082,028
Gold
Burkina Faso
$
Other
West Africa
$
Total
$
-
-
25,106
-
-
-
(24,907)
-
(24,907)
-
-
-
-
-
-
-
(408,463)
(1,870)
-
(1,026,461)
(1,436,794)
160,168
15,493,626
276,588
(132,251)
-
15,798,131
-
(118,939)
-
-
-
(118,939)
40,294
145,744
27,297
(39,001)
-
174,334
(131,467)
(1,400,827)
(31,326)
(24,907)
(1,026,461)
(2,589,881)
1,025,764
15,639,370
303,885
(370,311)
(100,000)
16,498,708
The group operates in three principal geographical areas – Australia (country of domicile), Burkina Faso and other
West African countries.
- 47 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
16
INTERESTS OF KEY MANAGEMENT PERSONNEL
Refer to the Remuneration Report contained in the Directors' Report for details of the remuneration paid or payable
to each member of the group's key management personnel for the year ended 30 June 2015.
The totals of remuneration paid to key management personnel of the company and the group during the year are as
follows:
KEY MANAGEMENT PERSONNEL OPTIONS AND RIGHTS HOLDINGS
The number of options over ordinary shares held by each key management person of the group during the financial
year is as follows:
Balance at
beginning of
period
Granted as
remunerat-
ion during
the period
Expired
during the
period
Other
changes
during the
period
Balance at
end of period
Vested
during the
period
Vested and
exercisable
Vested and
unexercis-
able
30 June 2015
Mr Philip Jackson
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Eric Moore3
Mr Ian Hobson
-
2,095,469
4,825,000
2,826,563
-
-
1,000,000
10,747,032
-
-
-
- (2,095,469)1
-
-
-
(125,000)
-
- (1,226,563)
-
-
-
-
-
-
- (1,000,000)2
-
(3,095,469)
- 1,351,563
-
-
4,700,000
1,600,000
-
-
-
6,300,000
-
-
-
-
- 4,700,000
- 1,600,000
-
-
-
-
-
-
- 6,300,000
-
-
-
-
-
-
-
-
(1) Mr Harman resigned as a director of the Company on 25 November 2014
(2) Mr Hobson resigned as secretary of the Company on 7 April 2015
(3) Mr Moore appointed as secretary of the Company on 7 April 2015
Balance at
beginning of
period
Granted as
remunerat-
ion during
the period
Exercised
during the
period
Other
changes
during the
period
Balance at
end of period
Vested
during the
period
Vested and
exercisable
Vested and
unexercis-
able
900,000 1,000,000
1,700,000 3,000,000
600,000 1,000,000
- 1,000,000
- 1,000,000
3,200,000 7,000,000
-
-
-
-
-
-
195,469
125,000
1,226,563
(1,000,000)1
-
2,095,469
4,825,000
2,826,563
-
1,000,000
547,032 10,747,032
- 2,095,469
- 4,825,000
- 2,826,563
-
-
- 1,000,000
- 10,747,032
-
-
-
-
-
-
30 June 2014
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Ian Hobson
(1) Options assigned to Lion Manager Pty Ltd in which Mr Markwell does not have a controlling interest
KEY MANAGEMENT PERSONNEL SHAREHOLDINGS
The number of ordinary shares in Predictive Discovery Limited held by each key management person of the group
during the financial year is as follows:
Balance at
beginning of
period
Granted as
remuneration
during the period
Issued on
exercise of
options during
the period
Purchased during the
period
Other changes
during the period
Balance at end of
period
30 June 2015
Mr Phillip Harman
Mr Phillip Jackson
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Eric Moore
Mr Ian Hobson
5,969,311
-
5,165,895
17,212,583
-
-
60,000
28,407,789
3,581,587
-
2,000,000
3,500,000
-
-
-
9,081,587
(9,550,898)
-
-
-
-
-
(60,000)
(9,610,898)
-
-
7,165,895
20,712,583
-
-
-
27,878,478
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- 48 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
16
INTERESTS OF KEY MANAGEMENT PERSONNEL (continued)
KEY MANAGEMENT PERSONNEL SHAREHOLDINGS (continued)
30 June 2014
Mr Phillip Harman
Mr Paul Roberts
Mr Philip Henty
Mr Tim Markwell
Mr Ian Hobson
Balance at
beginning of
year
Granted as
remuneration
during the year
Issued on
exercise of
options during
the year
Other changes
during the year
Balance at end
of year
3,398,258
3,702,079
10,929,688
-
60,000
18,090,025
-
-
-
-
-
-
-
-
-
-
-
-
2,571,053
1,463,816
6,282,895
-
-
10,317,764
5,969,311
5,165,895
17,212,583
-
60,000
28,407,789
OTHER KEY MANAGEMENT PERSONNEL TRANSACTIONS
There have been no other transactions involving equity instruments other than those described in the tables above.
For details of other transactions with key management personnel, refer to Note 20: Related Party Transactions.
17
AUDITORS’ REMUNERATION
Remuneration of the auditor of the parent entity for:
- Audit services
18
CONTROLLED ENTITIES
Name
Parent Entity:
Predictive Discovery Limited
Subsidiaries of legal parent entity:
Predictive Discovery SARL
Predictive Discovery Niger SARL
Predictive Discovery Cote D’Ivoire SARL
Birrimian Pty Ltd
Predictive Discovery Cote D’Ivoire Pty Ltd
* Percentage of voting power is in proportion to ownership
Acquisitions of controlled entities
There were no acquisitions during the year.
19
CONTINGENT LIABILITIES
2015
$
2014
$
37,000
37,000
37,000
37,000
Percentage
Owned (%)*
2015
Percentage
Owned (%)*
2014
Country of
Incorporation
Australia
Burkina Faso
Niger
Cote D’Ivoire
British Virgin Islands
Australia
100
100
100
100
100
100
100
100
100
100
There are no material contingent liabilities or contingent assets of the group at balance date.
- 49 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
20
RELATED PARTY TRANSACTIONS
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
Transactions with related parties:
Intercompany Loans
Predictive Discovery Limited has made loans to its subsidiaries in the amount of $16,829,444. The loan is interest
free and payable on demand.
Directors’ Remuneration
For information relating to related party transactions with key management personnel during the financial year, refer
to Note 16.
Other Related Party Transactions
Churchill Services Pty Ltd, an entity associated with Ian Hobson, was paid $72,550 for company secretarial services
during the year.
21
CASH FLOW INFORMATION
RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH LOSS AFTER INCOME TAX
Profit (loss) for the year
Non-operating items in profit
Exploration expenditure
Interest income
Non-cash flows in profit
Non-cash based share issues
Share based payments
Depreciation
Foreign exchange (gains)/losses
Write off of exploration expenditure
Changes in assets and liabilities
(Increase)/decrease in receivables
Increase/(decrease) in payables
Increase/(decrease) in provisions
Increase/(decrease) in FX Reserve
2015
$
2014
$
(7,060,889)
(2,589,882)
124
(9,267)
24,907
(25,106)
-
-
(48,217)
6,320,272
113,201
(128,280)
776
(120,924)
(933,204)
131,467
2,405
31,326
1,026,461
(54,132)
221,144
(1,117)
88,209
(1,144,318)
- 50 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
22
SHARE BASED PAYMENTS
The group did not enter into any share based payments during the period ending 30 June 2015.
During the previous period ending 30 June 2014, the group entered into the following share-based payments:
1.
2.
3.
The issue of 2,771,462 ordinary shares in the company in consideration for the option payments on mining
permits for the value of $59,994;
The issue of 327,000 ordinary shares in the company as employee incentives to Burkina Faso employees
for the value of $6,867; and
Entered into a contract to issue 12,000,000 unlisted options exercisable at $0.02 per share expiring 3 years
from date of issue for the value of $59,123.
At 30 June 2015 the group has the following share-based payment options on issue to employees:
Grant Date
20 Aug 2010
27 Mar 2014
Expiry Date
20 Aug 2015
31 Mar 2017
Exercise
price
$0.250
$0.022
Start of the
year
6,000,000
8,000,000
14,000,000
Granted
during the
year
Exercised
during the
year
Forfeited
during the
year
-
-
-
-
-
-
-
-
-
Balance at
the end of
the year
6,000,000
8,000,000
Vested and
exercisable at
the end of the
year
6,000,000
8,000,000
14,000,000
14,000,000
At 30 June 2015 the group has the following share-based payment options on issue in lieu of capital raising fees:
Grant Date
5 Dec 2012
5 Dec 2012
Start of the
Exercise
year
price
Expiry Date
30 Oct 2015
2,000,000
$0.15
30 Jun 2015 $0.10-$0.20 3,500,000
5,500,000
Granted
during the
year
Exercised
during the
year
Forfeited
during the
year
-
-
-
-
-
- (3,500,000)
Balance at
the end of
the year
2,000,000
-
Vested and
exercisable at
the end of the
year
2,000,000
-
- (3,500,000)
2,000,000
2,000,000
The weighted average exercise price of options as at 30 June 2015 was $0.13 (30 June 2014: $0.12). The weighted
average remaining contractual life of options outstanding at year end was 0.94 (30 June 2014: 1.78).
During the year ending 30 June 2015 no options were granted.
During the year ending 30 June 2014, the fair value of options granted was $72,344.
The fair value of the options granted to employees and brokers is deemed to represent the value of services received
over the vesting period. These values were calculated by using a Black-Scholes option pricing model applying the
following inputs:
Dividend yield (%):
Exercise price (cents):
Life of option (years):
Expected share price volatility (%):
Risk-free interest rate (%):
-
2.2 cents
3
100
3.03
Historic volatility has been the basis of determining expected share price volatility as it is assumed that this is
indicative of future movements.
The life of the options is based on the historical exercise patterns, which may not eventuate in the future.
23
EVENTS AFTER THE END OF THE REPORTING PERIOD
No matters or circumstances have arisen for the year which significantly affected or could significantly affect the
operations of the group, the results of those operations, or the state of affairs of the group in future financial years.
- 51 -
PREDICTIVE DISCOVERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015
24
PARENT ENTITY
The following information has been extracted from the books and records of the parent, Predictive Discovery Limited
and has been prepared in accordance with Accounting Standards.
The financial information for the parent entity, Predictive Discovery Limited has been prepared on the same basis as
the consolidated financial statements except as disclosed below.
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Equity
Issued capital
Accumulated losses
Reserves
Total Equity
CONTINGENT LIABILITIES
Nil
CONTRACTUAL COMMITMENTS
2015
$
2014
$
714,374
19,039,583
19,753,957
825,302
18,067,404
18,892,707
159,019
-
159,019
199,059
100,000
299,059
24,180,868
(6,528,748)
1,942,818
19,594,938
22,539,831
(5,905,102)
1,958,919
18,593,648
The parent entity has commitments as at 30 June 2015 that are disclosed in Note 13.
RECOVERABILITY OF INTERCOMPANY LOAN
Within Non-current assets is a loan due from the 100% subsidiaries of $16,829,444 which is considered fully
recoverable. The recoverability of this loan is dependent upon the successful development or sale of exploration
assets in Burkina Faso.
25 COMPANY DETAILS
The registered office of the company is:
The principal place of business of the company is:
Predictive Discovery Limited
Suite 2, Level 2
20 Kings Park Road
WEST PERTH WA 6005
Predictive Discovery Limited
Level 2, 33 Ord Street
WEST PERTH WA 6005
- 52 -
PREDICTIVE DISCOVERY LIMITED
DIRECTORS’ DECLARATION
The directors of the company declare that:
1.
The financial statements and notes, as set out on pages 11 to 39, are in accordance with the Corporations
Act 2001 and:
(a)
comply with Accounting Standards; and
(b)
give a true and fair view of the financial position as at 30 June 2015 and of the performance for
the year ended on that date of the consolidated group;
2.
The Chief Executive Officer and Chief Financial Officer have each declared that:
(a)
(b)
the financial records of the company for the financial year have been properly maintained in
accordance with section 286 of the Corporations Act 2001;
the financial statements and notes for the financial year comply with the Accounting Standards;
and
(c)
the financial statements and notes for the financial year give a true and fair view.
Note 1 confirms that the financial statements also comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board.
3.
In the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Paul Roberts
Managing Director
18 September 2015
- 53 -
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS
OF PREDICTIVE DISCOVERY LIMITED & CONTROLLED ENTITIES
Report on the Financial Report
We have audited the accompanying financial report of Predictive Discovery Limited & controlled
entities, which comprises the consolidated statement of financial position as at 30 June 2015, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, notes
comprising a summary of significant accounting policies and other explanatory information and the
directors’ declaration of the consolidated entity comprising the company and the entities it controlled
at the year’s end or from time to time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act
2001 and for such internal control as the directors determine is necessary to enable the preparation
of the financial report that is free from material misstatement, whether due to fraud or error. In Note
1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of
Financial Statements that the financial statements comply with International Financial Reporting
Standards (IFRS).
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial report. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the
company’s preparation of the financial report in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
An audit also includes evaluating the appropriateness of accounting policies
entity’s internal control.
used and the reasonableness of accounting estimates made by the directors, as well as evaluating
the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independent Auditor’s Report
to the Members of Predictive Discovery Limited & Controlled Entities
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001.
Auditor’s Opinion
In our opinion:
a.
the financial report of Predictive Discovery Limited & controlled entities is in accordance with
the Corporations Act 2001, including:
i.
ii.
giving a true and fair view of the consolidated entity’s financial position as at 30 June
2015 and of its performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations
2001; and
b.
the financial report also complies with International Financial Reporting Standards as disclosed
in Note 1.
Emphasis of Matter – Material Uncertainty Regarding Continuation as a Going Concern
Without modifying our opinion, we draw to Note 1 (s) “Key Judgement – Going Concern” which
indicates the company incurred a loss for the year ended 30 June 2015 of $7,057,719 and that the
company’s ability to continue the exploration and development of its mining tenements and meet
operational expenditure at current levels is dependent upon future capital raising. These conditions,
along with other matters as set forth in Note 1 (s), indicate the existence of a material uncertainty that
may cast significant doubt about the company’s ability to continue as a going concern and therefore,
the company may be unable to realise its assets and discharge its liabilities in the normal course of
business.
Emphasis of Matter - Inherent Uncertainty regarding Recoverability of Capitalised Exploration and
Evaluation Assets
Without modifying the opinion expressed above, attention is drawn to the following matter. As a result
of the matter described in Note 1(s) and Note 6 to the financial statements, there is uncertainty as to
whether the company will be able to recover the carrying value of exploration expenditure for the
amount recorded in the financial report. The ultimate recovery of the carrying value of exploration
expenditure, and future exploration expenditure, is dependent upon the successful development and
commercial exploitation or, alternatively, sale of the interest in the tenements.
Independent Auditor’s Report
to the Members of Predictive Discovery Limited & Controlled Entities
Report on the Remuneration Report
We have audited the remuneration report included in pages 7 to 9 of the directors’ report for the year
ended 30 June 2015. The directors of the company are responsible for the preparation and
presentation of the remuneration report in accordance with s 300A of the Corporations Act 2001. Our
responsibility is to express an opinion on the remuneration report, based on our audit conducted in
accordance with Australian Auditing Standards.
Auditor’s Opinion
In our opinion the remuneration report of Predictive Discovery Limited & controlled entities for the
year ended 30 June 2015 complies with s 300A of the Corporations Act 2001.
NEXIA MELBOURNE
ABN 16 847 721 257
ANDREW JOHNSON
Partner
Audit & Assurance Services
Melbourne
18 September 2015
PREDICTIVE DISCOVERY LIMITED
ADDITIONAL SHAREHOLDER INFORMATION
IN COMPLIANCE WITH ASX REQUIREMENTS ……
The additional ASX information is current as at 15 October 2015.
CORPORATE GOVERNANCE STATEMENT
The 2015 Corporate Governance statement of Predictive Discovery Limited is available on the
Company’s website at http://www.predictivediscovery.com/corporate/corporate-governance
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders as defined by Section 671B of Australian Corporations Law are:
Shareholder name
AURORA MINERALS LIMITED
EQUITY TRUSTEES LIMITED (LOWELL RESOURCES FUND A/C)
Number Held
Percentage
285,768,249
34,013,095
43.92%
5.23%
PARTICULARS OF TWENTY LARGEST SHAREHOLDERS
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Name
AURORA MINERALS LIMITED
EQUITY TRUSTEES LIMITED (LOWELL RESOURCES)
DYSPO PTY LTD
KITARA INVESTMENTS PTY LTD
FINANCE ASSOCIATES PTY LTD
PAJAL PTY LTD
HYDRONOMEES PTY LTD
MR WILLIAM HENRY HERNSTADT
CROFTBANK PTY LTD
BOND STREET CUSTODIANS LIMITED
BUPRESTID PTY LIMITED
MR MICHAEL ROBERT HODGETTS
MR NEIL CLIFFORD & MRS LUDMILLA DUNCAN
MR WILLIAM HENRY HERNSTADT
MR ROBERT TONY SAMBUCCO
MR CAIGEN WANG
SISU INTERNATIONAL PTY LTD
MR RHETT ANTHONY JOHN MORSON
BLUE SKY HOLDINGS PTY LTD
PRIVATE EQUITY CAPITAL PTY LTD
TOTAL
Balance of Register
Grand TOTAL
Holding
285,768,249
34,013,095
13,368,833
10,312,500
10,000,000
9,442,898
9,306,162
7,955,796
7,427,769
7,165,895
7,070,000
7,000,000
6,523,458
5,750,000
5,417,414
5,380,000
5,263,158
4,625,000
4,491,203
4,218,750
450,500,360
200,083,983
650,584,343
%IC
43.92%
5.23%
2.05%
1.59%
1.54%
1.45%
1.43%
1.22%
1.14%
1.10%
1.09%
1.08%
1.00%
0.88%
0.83%
0.83%
0.81%
0.71%
0.69%
0.65%
69.25%
30.75%
100.00%
DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of shareholders by size of holding:
Range
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Unmarketable Parcels
Securities
637,879,192
12,257,123
347,786
97,676
2,566
650,584,343
18,556,656
57
No of Holders
306
272
40
27
20
665
402
PREDICTIVE DISCOVERY LIMITED
ADDITIONAL SHAREHOLDER INFORMATION
IN COMPLIANCE WITH ASX REQUIREMENTS ……
DISTRIBUTION OF EQUITY SECURITIES (continued)
UNQUOTED EQUITY SECURITIES
There is 1 holder of 2,000,000 unlisted options expiring 30 October 2015, with an exercise price of
15 cents.
Holders of more than 20%
Holder name
Number
CHALMSBURY NOMINEES PTY LTD
2,000,000
%
100%
There are 6 holders of 8,000,000 unlisted options expiring 31 March 2017 and exercisable at 2.2
cents.
Holders of more than 20%
Holder name
PAUL ROBERTS
Number
3,000,000
%
37.5%
USE OF FUNDS
The Company has used the cash and assets in a form readily convertible to cash at the time of re-
admission in a way consistent with its business objectives.
VOTING RIGHTS
Each fully paid ordinary share carries voting rights of one vote per share.
58
PREDICTIVE DISCOVERY LIMITED
ADDITIONAL SHAREHOLDER INFORMATION
IN COMPLIANCE WITH ASX REQUIREMENTS ……
INTEREST IN MINING RENEMENTS
Name
Number
Location
Area
(sq. km)
PDI equity
Fouli
Tantiabongou
Sirba
Madyabari
Tyekanyebi
arrêté 2014-
294/MCE/SG/DGMGC
arrêté 2013-
168/MCE/SG/DGMGC
arrêté 2014-
296/MCE/SG/DGMGC
arrêté 2014-
295/MCE/SG/DGMGC
Arrêté 2015-
229/MCE/SG/DGMGC
Burkina Faso
186.2
100%
Burkina Faso
93.9
100%
Burkina Faso
136.9
100%
Burkina Faso
171.9
100%
Burkina Faso
140
100%
Tamfoagou
arrêté 2015-
281/MCE/SG/DGMGC)
Burkina Faso
238
100%
Tangagari
arrêté 2013-
37/MCE/SG/DGMGC
Burkina Faso
127.5
Earning 95%; current equity 0%
(until final cash payment is made)
Aoura
arrêté 2011-
405/MCE/SG/DGMGC
Burkina Faso
25
Earning 95%; current equity 0%
(until final cash payment is made)
Boussouma
Arrete 2011-
059/MCE/SG/DGMGC
Burkina Faso
116
Earning 95%; current equity 0%
(until final cash payment is made)
Bangaba
Arrete 2015-
109/MCE/SG/DGMGC
Burkina Faso
128
Earning 95%; current equity 84%
Kogodou South
2015-226/MCE/SG/DGMGC
Burkina Faso
44.6
Earning 100%; current equity 0%
(until final cash payment is made)
Bira
2013-33/MCE/SG/DGMGC
Burkina Faso
21
100%
Basieri
2013-16/MCE/SG/DGMGC
Burkina Faso
73.5
100%
Kokoumbo
Mining exploration permit
No. 307
Cote D'Ivoire
400
Earning 90% (Toro Gold Ltd
earning 51% interest)
Ferkessedougou
Mining exploration permit
No. 310
Cote D'Ivoire
387
100% (Toro Gold Ltd earning 51%
interest)
Boundiali
Mining exploration permit
No. 414
Cote D'Ivoire
399
100% (Toro Gold Ltd earning 51%
interest)
Kounahiri
Mining exploration permit
No. 317
Cote D'Ivoire
347
100% (Toro Gold Ltd earning 51%
interest)
Cape Clear
EL 5434
Victoria, Australia
120
Cape Clear Minerals Pty Ltd
earning 51%
59
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